Endah Sulastri, Senior Associate of ADCO Law, represented the firm as speaker at the Indonesia Coal Outlook Conference 2022, which was held on Wednesday, 18 May 2022. Inviting professionals in the coal and mining sector, this event was held for two days by Coal Metal Asia Magazine and Petromindo.com at JW Marriott Hotel, Jakarta.
For approximately 20 minutes, Endah explained the data, implementation, monitoring, and sanctions related to Coal Domestic Market Obligation ( DMO ) in Indonesia. As previously noted, January 2022 was a shocking month not only for the country’s coal industry players but also for countries in the Asia-Pacific region after Indonesia, the world’s largest thermal coal exporter, decided for the first time in its history to totally stop its international coal sales.
Under the DMO policy, the country’s coal miners are required to allocate at least 25 percent of their annual production for the domestic market including for the power plant sector. The Newcastle coal price index was at US$183.44 per tonne when the government enforced the total export ban. The sharp increase in coal price, from US$95.29 per tonne in May 2021 to US$ 258.90 per tonne in mid-October 2021 had created a huge disparity between the coal price for exports and the domestic market.
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Indonesia produced 614 million tonnes of coal in 2021, representing 98.2 percent of the government’s full-year target of 625 million tons. Data from the government shows that the realization of coal supply for the domestic market last year reached 133 million tonnes, or 96.7 percent of the full-year target of 137.5 million tonnes, mostly for PLN . In 2022, Indonesia is targeting coal production of 663 million tons, of which around 498 million tonnes are allocated for the global coal market.
In front of dozens of mining and coal professionals, including business players, investors, and researchers, Endah highlighted the national energy policy and energy consumption. She also explained the regulations regarding the DMO as well as the subject of DMO and the DMO schemes, including the sanctions and the monitoring aspects. Endah closed her presentation with explanations about the DMO-related emerging issues such as the Government’s plan to raise the DMO percentage and the disparity of the Government and Domestic Prices.
As a Senior Associate focusing on the practice areas of Corporate Commercial, Natural Resources, Mining Disputes , Construction , Merger and Acquisition , Oil and Gas , Banking and Finance, Forestry and Plantation, Commercial Dispute Resolution, and Environment, Endah Sulastri hopes that her presentation in Indonesia Coal Outlook Conference 2022 can give new insights, and open legal perspectives for the attendees regarding Coal Domestic Market Obligations in Indonesia.
“I am different from the other attendees and speakers at this conference, where the majority of them are business owners, business leaders, chiefs of international and national associations and organizations. Meanwhile, on behalf of ADCO Law, I am trying to open up the audience’s point of view from the legal perspective,” said Endah Sulastri.
Meanwhile, the Editor in Chief of Coal Metal Asia Magazine, Adianto P. Simamora, through his speech in the Coal Outlook Conference 2022 event book, expressed his gratitude to all parties who have participated in that event.
“On behalf of the organizing committee, I welcome all the coal and mining professionals to this signature event of the year. I add my best wishes for a successful and fruitful conference and my thanks to all sponsors and participants,” he said.
ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.
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Disclaimer: This article has been prepared for scientific reading and marketing purposes only from ADCO Law. Accordingly, all the writings contained herein do not constitute the formal legal opinion of ADCO Law. Therefore, ADCO Law should be held harmless of and/or cannot be held responsible for anything performed by entities who use this writing outside the purposes of ADCO Law.