[SMM Coal Flash] Indonesia Plans to Exclude Captive Coal-Fired Power Plants from Miners’ DMO Obligations

Published: Oct 26, 2026 14:55 (GMT+8)

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Indonesia’s Ministry of Energy and Mineral Resources (ESDM) plans to exclude captive coal-fired power plants, particularly those supplying smelters, from coal miners’ domestic market obligation (DMO) calculations. Under the proposed policy, DMO assignments would cover only coal-fired power plants connected to state-owned utility PLN’s electricity grid.

ESDM also confirmed that captive power plants will not be eligible for the regulated DMO coal price of US$70/t and will instead have to purchase coal at market prices. The policy has not yet taken effect, with implementation expected in the near term.

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