Fulfilling Domestic Needs, Indo Tambangraya Will Greatly Transfer Coal Quota

By : Hariyanto And Aldo Bella Putra | Wednesday, September 05 2018 - 03:00 IWST

Tambang Batubara (ist)
Tambang Batubara (ist)

INDUSTRY.co.id - Jakarta - PT Indo Tambangraya Megah Tbk (ITMG) is conducting discussions with partners regarding plans to meet domestic needs (DMO) of coal.

"The mechanism being negotiated is the possibility of transferring the coal quota," the management was quoted as saying from the IDX's information disclosure on Tuesday (04/09/2018).

The company estimates that in the fourth quarter of 2018 or at the latest in the first quarter of 2019 an evaluation of the fulfillment of DMO obligations will be carried out, together with the finalization of the plan.

The DMO obligation that has been carried out by the company until the first semester of this year is around 11%. At present, there is still a shortage of around 14% of the obligations set by the government.

Regarding demand from China, the company is still optimistic about the potential demand because the demand is very large. To meet internal needs, China only imports 5% of the total coal consumed.

"So, we still see a potential demand from China despite information about the decline in coal consumption," he said.

In line with China's economic growth, the percentage of coal usage in power plants in China will decrease, but in absolute amount will rise.

Until the end of this year, the company is optimistic that it can sell 100% of coal. The optimism is supported by a new market to Vietnam where the first sales of 700,000 tons were recorded in the second quarter 2018 performance. (Imq)

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…