President Jokowi Orders Ministers to Meet Domestic Energy Needs

President Jokowi

President Joko “Jokowi” Widodo has urged private sector, state-owned enterprises (SOEs) and their subsidiaries in the fields of plantations, mining, or other natural resources to fulfill domestic needs before exporting the commodities.

“[This is] as mandated by Article 33 paragraph (3) of the 1945 Indonesian Constitution, which states that land, waters and natural resources within shall be under the powers of the state and shall be used to the greatest benefit of the people,” the President said in his remarks, Monday (1/3).

The President also ordered Minister of Energy and Mineral Resources (ESDM), Minister of State-owned Enterprises (BUMN), and state-owned electricity company PT PLN to immediately come up with the best solution for the national interest in fulfilling coal needed by PT PLN and domestic industries.

Under the domestic market obligation (DMO) policy, he said, mining companies are required to meet the needs of PLN’s generators and must not violate the policy for any reason.

“Any companies that fail to fulfill their obligations to meet domestic needs may be subject to sanctions. If necessary, the Government will not issue their export permits and revoke their business licenses,” the President said, while also urging liquefied natural gas (LNG) producers, be it state-owned energy company PT Pertamina or private companies, to put domestic needs as priority.

“I have also ordered Ministry of Energy and Mineral Resources and Ministry of SOEs to find a permanent solution to this issue,” he added.

On that occasion, the Head of State ordered Minister of Trade to ensure stability of domestic cooking oil prices since the price of crude palm oil in the export market is quite high.

“Once again, the Government’s main priority is the needs of the people. The price of cooking oil must remain affordable. If necessary, Minister of Trade can carry out market operations so that prices remain under control,” the President remarked.

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