MEMR Regulation No. 25/2018 - Domestic Market Obligation (DMO)

Country / jurisdiction: Indonesia · Year: 2018 · Status: In force · Level: National · Type: Voluntary

Ministry of Energy and Mineral Resources (MEMR) Regulation No. 25 of 2018 aims to ensure the domestic availability of coal and minerals, support national energy and economic resilience and stabilise commodity prices. It applies to both coal and mineral mining permit holders (production operation mining business licenses or IUP and special mining business licenses IUPK), including those involved in processing, refining, transportation and sales.

Key provisions include:

Mining companies must prioritise domestic demand before exporting.

The specific DMO levels (e.g., percentage of production allocated to domestic market) are not fixed in the regulation but are determined annually by the MEMR.

MEMR may also regulate types and quantities of minerals required for domestic use.

To implement these provisions:

Annual MEMR decrees set DMO quotas and price caps (e.g., MEMR Decree No. 72.K/MB.01/MEM.B/2025 on the sale of metal minerals and coal).

Export approvals are contingent on meeting DMO obligations.

While not a price regulation, this policy is complementary to Indonesia's metal domestic price regulation policies.

Official source: https://peraturan.bpk.go.id/Details/142233/permen-esdm-no-25-tahun-2018