TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Minister Ignasius Jonan ratified an additional volume of coal production up to 100 million tons under the Energy Minister`s Decree No. 1924 K/30/MEM/2018, practically increasing the initial 485 tons to 585 tons.
The decree stated that the extra production will only affect the coal sold overseas and is not considered under the domestic market obligation (DMO), which is 25 percent of the annual coal production according to Law No. 4/2009.
Read: Ministry Cannot Say When Coal Limitation Rule Can Start
The Ministry’s spokesman Agung Pribadi said that there are at least 40 companies that have proposed for a bump in production up to 35 million tons. The government has approved requests from 30 companies and agreed to increase production up to 25 million tons while others were rejected since their DMOs are below 12.5 percent.
“The companies that didn’t meet their production are not approved,’ said Agung at the ministry’s office on Thursday, August 23.
The Indonesian Coal Mining Association predicts that mining activities this year will flourish more compared to the previous year since the coal is valued at US$100 per ton this year, said the association’s Executive Director Hendra Sinadia.
ROBBY IRFANI
