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Govt fines 240 miners for failure to meet coal DMO
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In the first half of the year, the government collected Rp 1.83 trillion (US$128 million) in fines from 240 mining companies that failed to comply with the country’s domestic market obligation (DMO) for coal.
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n the first half of the year, the government collected Rp 1.83 trillion (US$128 million) in fines from 240 mining companies that failed to comply with the country’s domestic market obligation (DMO) for coal.
A number of miners opted to pay the fine and export a greater portion of their coal production at higher world prices, instead of selling it for domestic use.
The Finance Ministry projected that the total fines could reach Rp 2.37 trillion by the end of the year.
“These fines imposed for the DMO policy have contributed significantly to non-tax revenue collection,” said Kurnia Chairi, the ministry’s director of non-tax revenue for natural resources and separate state assets.
Read also: Indonesia mulls raising coal DMO to 30%
Earlier this year, state-owned electricity firm PLN reported it was lacking the coal supplies to keep power running. In response, the government began enforcing DMO violation fines more stringently and increased its oversight of the coal industry.
This month, PLN said another coal crunch could occur later this year amid high world prices.
