Indonesia: Domestic market obligation (DMO) for mineral and coal producers
Description
The Ministry of Energy and Mineral Resources issued a new regulation (No. 34 of 2009), effective 31 December 2009, on prioritising mineral and coal resources for domestic usage. This regulation is one of the first regulations related to Indonesia's update of the mining legislation in 2009 (No. 4/2009). The regulation requires producers of coal and mineral to allocate a minimum percentage of its total production to the domestic market. This DMO percentage is to be determined by the Ministry each June and made available to mining companies prior to the year in which it will be effective.
The Regulation includes strict sanctions for failure to comply with the DMO requirement, including a cut of up to 50% in quotas for mining production (for the mining company) or trading volume (for the trading company) in any relevant year.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | No |
| Is there any evidence that alternatives to the proposed measure were considered? | No |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | No |
| Was such evidence identified? | No |
| Is such evidence publicly available? | No |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | Yes |
Date Discovered: 08/02/2010
Implemented: Yes
Date of inception: 31 Dec 2009
GTA Evaluation: Red
Source:
Mondaq, 25 January 2010 (http://www.mondaq.com/article.asp?articleid=92802)
Ministry of Energy and Mineral Resources, Regulation No. 34 of 2009 (http://translate.googleusercontent.com/translate_c?hl=de&sl=id&u=http://...)
Government Response:
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