Indonesia reviewing rules mandating coal sales to local buyers
The government of Indonesia intends to change the regulation that forces coal producers to allocate 25% of their output to the domestic market as part of the Domestic Market Obligation.
As domestic demand, mainly from the state-owned electric company PT Perusahaan Listrik Negara (PLN), is limited, and the output increasing, coal producers are struggling to comply with the domestic obligation.
The country promotes the use of coal in the household sector as a substitute for imported LPG.
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