ENERGY POLICY DMO COAL IN INDONESIA

Yes, we have to be fully aware that a strong Country must be backed up by its Energy, where as an alternative besides Hydrycarbon Oil and Gas and Geothermal, we have to make sure that the Policy made by the Indonesian Government as well as the Rulings from the Legislator  have to support  increasing Coal Products to support the Energy in Indonesia;

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• As already practiced in the Oil and Gas Policy applied by the Government of Indonesia as reflected in the rulings,  DMO (or Domestic Market Obligation)  is obligated to Oil and Gas Companies operating in Indonesia to market and sell its 25% (twenty five percent)  of its Annual Oil Production in the Indonesian Territory to secure the Energy supply and need in Indonesia; 

This similar Policy shall and have to be ensured and secured by the Government of Indonesia as well as the Legislator in the People House Of Representative in the Coal Sector, where the Coal Producers are obligated by the DMO (Domestic Market Obligation) Policy to market portion of its Coal Production to be sold within the Indonesian Territory; This Policy is really significant for a Developing Country like Indonesia who has around 250 million of People who needs energy supply to support its standard of living; 

• As we are aware  implementation of this DMO is  applied in the Mineral and Mining Law No. 40 of 2009 and the Ministerial of Energy and Mineral Resources No. 34 of 2009 which applied the prioritizing of the the domestic mineral and coal supplies, and the Directive of the Directorate General Of Mineral, Coal and Geothermal on the technical supervision on supervision on providing the minimum precentage of sales for domestic purposes; 

This Policy is aimed to at least secure the domestic coal supply to back up the Energy in Indonesia especially which is needed for the Power Plant operated by PLN (The State Electricry Enteprise) to support the Electricity need for the Industry as well as the people of Indonesia;  Accordingly, we have to be sure and certain that this Policy must  improve the Indonesian Country's capability  to compete in the National and International level.  Thus the  national interest must be put up front.

• Since Indonesia is still considered a Developing Country, we have to manage our abundant natural resources to our Nations best interest,  especially to support the quality of life of the 250 million people living in Indonesia; We must prioritize our goal and target for the Indonesian Nation which is free education, and hospital for its people so that we can increase the educated and healthy person in Indonesia;

In order to achieve such target we have to think as Indonesian Inc. and must learn from other neighboring countries like India and China who has also huge numbers of population that have to be taken care by this Country, and have succeeded to seriously made a good Road Map Planning in their Energy Policy system which could back-up the needs of the Energy needed by their Power Plant to support the Industry and human household ;

• Based on the above, we have to make sure the Policy and the Rulings made by the Indonesian Government as well as the People House of Representative,  must be geared to develop the Policy and Rulings which must support such goals and target;       

Jakarta, 21 August 2012
Agung  S.Suleiman