After coal, government pushes DMO on gas for electricity

Jakarta: After introducing its domestic market obligation (DMO) policy for coal on March 12, the government is going forward with its plan to introduce a DMO for gas in an effort to reduce electricity prices.

Energy and Mineral Resources Ministry Electricity Director General Andy N. Sommeng said in Jakarta on Thursday that the DMO was expected to take effect by the end of this year.

He said that gas was the most efficient option for electricity production in outermost, frontline and disadvantaged regions, most of which are not connected to the main networks of state-owned electricity company PLN.

Andy said the government had considered the impact of the policy on the upstream gas sector.

He said the impact would not be too significant because many gas companies had operated for about 30 years and had by now reached breakeven point.

Published in The Jakarta Post, 17th May, 2018