Govt brings in domestic coal market obligation

The Energy and Mineral Resources Ministry has issued a ministerial decree requiring producers of coal and other minerals to allocate a proportion of their annual production output to the domestic market, or face sanctions.

The decree, signed on Dec. 31, 2009, states that the proportion for the so called annual domestic market obligation (DMO) will be equal to the estimate of annual demand proposed by potential domestic buyers a year earlier.

Both the producers and domestic consumers are bound to the DMO and failure to comply will result in sanctions.

Excerpt from The Jakarta Post.

I don’t think that every coal producer has any objection on this matter. Energy security, especially for domestic, is highly understood, as long as the price is reasonable.

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Author: aryadn

blogger, microblogger, professional mining engineer, metallurgist by education, interested in mobile-street photography.