IO – President Joko Widodo (Jokowi) recently remarked that the Government requires private companies, state-owned enterprises (SOEs) and their subsidiaries in the mining, plantations, and other natural resources sectors to prioritize domestic needs before hunting for export markets. He pointed out that this is mandated in the Constitution.
“This is mandated in Article 33 paragraph (3) of the 1945 Constitution, stating that the land, the waters and the natural resources within shall be under the powers of the State and shall be used for the greatest benefit of the people,” said the President said in his statement, Monday (1/3/2022).
In terms of coal supply, Jokowi ordered the Energy and Mineral Resources Ministry, the SOEs Ministry and the State Electricity Company (PLN) to immediately find an optimal solution for the nation’s interest. He said the priority is to meet the domestic needs for PLN and local industries.
The President mentioned that a domestic market obligation (DMO) requires mining companies to accommodate PLN power generation needs – this is mandatory and should not be violated for any reason.
“Companies unable to fulfill their obligations to meet local needs may be subject to sanctions. If necessary, they will be exempted from obtaining export permits and their business license will be revoked,” Jokowi said.
As for the supply of liquefied natural gas (LNG), the President also asked LNG producers, be it Pertamina or private companies, to focus on domestic needs first.
“I instructed the Energy and Mineral Resources Ministry and the SEOs Ministry to find a permanent solution to this problem,” he said.
The President also instructed the Trade Minister to ensure the price stability of cooking oil in domestic markets. The public is aware that the price of crude palm oil in export markets has rocketed.
“Again, the Government’s top priority is the needs of the people. Cooking oil must remain affordable. If necessary, the Trade Minister can conduct market operations to keep prices under control,” said Jokowi. (eka)