Key facts
- PT Pertamina signed a deal to buy 1.5 million tons of coal from PT Kideco Jaya Agung.
- The deal aims to secure coal supply for Pertamina's power plants.
- Concerns have been raised about whether Indonesia will meet its domestic coal supply obligations (DMO).
Indonesia's state-owned energy company, PT Pertamina, has entered into an agreement to purchase 1.5 million tons of coal from PT Kideco Jaya Agung. This deal has sparked concerns regarding Indonesia's ability to fulfill its domestic coal supply obligations (DMO), a policy designed to ensure sufficient coal for domestic power generation. The agreement aims to secure coal for Pertamina's power plants, but questions remain about its impact on the DMO targets.