Jokowi to Revoke Permits of Coal Firms Neglecting DMO
3 January 2022 20:34 WIB
TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo reminded Indonesia's coal industry players to abide by the domestic market obligation (DMO) policy.
“There is a DMO policy that obliges mining companies to meet the needs of PLN (state-run electricity) plants. This is an absolute rule that must not be violated for any reason,” said the President in an online statement, Monday, January 3.
He also reminded that the government could impose sanctions on firms that neglect their obligations. “If necessary, not only do we refuse to issue export permits but also revoke their business licenses,” he added.
According to the head of state, private companies, state-owned enterprises, and their subsidiaries must first provide domestic needs before exporting. He then cited Article 33(3) of the 1945 Constitution.
“The earth, water, and natural resources contained therein shall be controlled by the state and used for people's maximum welfare,” Jokowi mentioned.
Previously reported, the Ministry of Energy and Mineral Resources or ESDM asked for the commitment of coal business players to supply their mining products to PLN as the SOE’s steam power plant (PLTU) was facing shortages of coal supply which possibly threaten the electricity supply for 10 million customers.
Read: House Legislator Backs Govt's Coal Export Ban