Indonesia Coal Sector "Our initial take on ESDM's potential plan to ..."

Research evidence excerpt

Indonesia Coal Sector "Our initial take on ESDM's potential plan to ..."

Global Research

19 June 2026ab

Indonesia Coal Sector Equities

IndonesiaOur initial take on ESDM's potential plan to

revise the DMO coal price Coal

Timothy Handerson

Analyst

timothy.handerson@ubs.com

ESDM may evaluate the DMO coal price +62-21-2554 5000

As per a local media report, the Minister of Energy and Mineral Resources (ESDM) Igor Putra

mentioned on 18 June that the government is planning to evaluate the Domestic Market Analyst

Obligation (DMO) coal price of US$70/t for power plants, which has been in effect since igor.putra@ubs.com

2018. The plan seems to be driven by the scarcity of domestic mid-CV coal supply in +62-21-2554 7033

June, resulting in blackouts reported in Java. The Minister mentioned that higher Myles Allsop

production costs, combined with the domestic price cap, have contributed to Analyst

deteriorating margins for coal suppliers, resulting in difficulty for PLN (the state-owned myles.allsop@ubs.com

power company) to secure coal contracts, thus the plan to evaluate the DMO coal price +44-20-7568 1693

to ensure domestic coal suppliers remain profitable. Daniel Major

No concrete details yet; we present a scenario analysis daniel.major@ubs.com

Our conversations with listed coal miners revealed there has been no official +44-20-7568 3472

communication from the government regarding a potential change to DMO pricing, Ivan Reynaldo Sutheja

suggesting the initiative is still at an early stage. A higher DMO price, all else equal, Analyst

would be generally positive for the sector and benefit miners with higher domestic sales ivan-reynaldo.sutheja@ubs.com

proportions (ie, PTBA). However, we believe the government may concurrently raise the +62-21-2554 7037