Indonesia's PT Bukit Asam Welcomes Government Plan to Raise Coal DMO Price

State-owned mining company PT Bukit Asam Tbk (PTBA) has welcomed the Indonesian government's intention to revise the Domestic Market Obligation (DMO) price for coal. The company views the proposed increase as a positive development that could significantly benefit its financial performance.

Currently, the DMO price for coal used in electricity generation is set at $70 per ton. PTBA's Corporate Secretary Division Head, Eko Prayitno, stated that this price has remained static since 2017. He emphasized the need for a review, citing the evolution of production costs over recent years. "As a State-Owned Enterprise (BUMN) and a publicly listed company, PTBA in principle welcomes the government's plan to review and increase the DMO price of coal," Eko said.

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As a State-Owned Enterprise (BUMN) and a publicly listed company, PTBA in principle welcomes the government's plan to review and increase the DMO price of coal.

From a financial perspective, PTBA anticipates that a higher DMO price will positively affect its revenue and profitability. As a major supplier of coal for domestic needs, particularly for power plants, the company sells a portion of its production at the lower DMO rate compared to market prices. Eko explained that adjusting the DMO price to reflect current production costs would increase the company's average selling price (ASP), thereby improving profit margins and supporting revenue growth.

As of May 2026, PTBA had supplied approximately 48 percent of its total DMO allocation for the year to state electricity providers like PT PLN (Persero) and Independent Power Producers (IPPs). The company's support for the price revision underscores its alignment with government initiatives aimed at ensuring the sustainability and profitability of state-owned enterprises while meeting national energy demands.

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If the DMO price is adjusted to the current production costs, the company's average selling price (ASP) will increase, which can improve profit margins and support the company's revenue growth.