Indonesia, government calculates that the production of coal required sold in the country through the mechanism Domestic Market obligation (DMO) more than 20 percent of production from each company.
In addition, the government will cut production output of coal for next year, when the company did not fulfill the obligations of DMO in the current year. "The amount (DMO) of approximately 20 percent more production from each company in the years running. That's our estimate," said Director of Development and production of Mineral and Coal, the Ministry of ESDM, Bambang Gatot Ariyono, in Jakarta, Thursday (20/11).
He emphasized that the DMO obligation for companies and producers of coal means the company is to sell, not give, production to the domestic market.
This is done to flatten the understanding of some of the media to understand that one of the DMO. "Market to buy domestic coal, not submitted it," he said.
According to Bambang, the price of coal is purchased adjusted domestic market with market prices. The government will issue a benchmark price (index) each month to refer the average coal price of ICI (India Coal Index), Platts (Singapore), Global, and Barlow Jonker (Australia).
"If the operators of coal which, for example, this year does not meet the DMO, the production in the next year we cut from the lack of proportional obligations in the year. Cut mechanism, we do when he RKAB (Work Plan and Budget) years," Bambang explained.
According to him, all the provisions will be set in regulations minister of DMO will be published.