JAKARTA (Reuters) – Indonesia is reviewing rules that require coal miners to sell a portion of their coal to local buyers, a government official said on Monday, as suppliers struggle to meet the regulation.
FILE PHOTO: A tug boat pulls a coal barge along the Mahakam River in Samarinda, Indonesia, March 2, 2016. REUTERS/Beawiharta/File Photo
Coal miners are currently required to sell 25% of their output to the local market, mainly state-owned electric company PT Perusahaan Listrik Negara (PLN), a policy known as the domestic market obligation (DMO). However, since PLN’s demand is limited while output is climbing, the miners are unable to maintain the ratio of exports to domestic sales.
