Domestic Coal Supply Decree 2013

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 79-82

CHAPTER 7

Domestic Coal Supply Decree 2013

I.Executive Summary

1. Overview

The Domestic Coal Supply 2013 Decree (hereinafter referred to as “MoEMRD

2934/2012”) was issuedwith legal effect from October 8, 2012, and by way of

the implementation of MoEMRR 34/2009.

2. Approach

2.1 The 2013 domestic coal selling percentage (i.e., the percentage of coal

production that must be made available for domestic users in 2013) is

20.30%.

2.2 For 2013, however, the DMO is only being imposed on certain Coal

Mining Enterprises rather than on all Coal Mining Enterprises.

2.3 Forty-five holders of CcoW, one SoE, and 28 Production Operation

IUP holders only are the subject of the DMO in 2013.

3. Assessment

To the extent that MoEMRD 2934/2012 is indicative of MoEMR’s intention in

future years, it seems likely that, unless and until there is a dramatic increase

in the domestic demand for coal, small and medium-size holders of Pro-

duction Operation IUPs are going to be largely (although not entirely)

exempted from the DMO in any meaningful sense.

II.Details of Main Provisions

2.1 MoEMR has determined the minimum domestic coal supply require-

ment for 2012 on the basis of MoEMRD 2934K/2012.

2.2 The estimated domestic coal supply requirement in 2013 is 74.32

million tonnes.

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