Coal Domestic Market Obligation (DMO) policy implementation in Indonesia to achieve energy security

Abstract

As a country that still uses coal-fired power plants as the main electricity producer, the coal crisis that happened in 2009-2011 had a big impact on Indonesia. Therefore, to avoid disruptions in electricity productivity, the government established a coal DMO policy for coal producers in Indonesia. The implementation of this policy has succeeded in ensuring the stability of coal supply in Indonesia in the following years. However, at the end of 2021, Indonesia experienced another coal crisis despite the implementation of DMO policy. Therefore, this paper aims to explain hoe coal DMO impact security energy in Indonesia and we also try to describe the implementation of DMO policy in Indonesia. The data used in the study were obtained from literature studies from various publications related to coal DMO policy in Indonesia. The result shows that the coal crisis at the end of 2021 occurred as an impact of the supply of coal DMO that was not in accordance with the provisions (35000 MT of the total 5.1 million MT). Despite that, we also found that coal DMO plays important roles in ensuring the energy security in Indonesia.