In addressing DMO violations caused by the significant gap between the market price of coal and domestic coal prices, the Indonesian government is currently formulating legislation to establish an entity empowered to collect and disburse compensation funds as a penalty for DMO non-compliance. In 2022, the Indonesian government initially decided to establish a Public Service Agency (BLU) to implement the collection-disbursement scheme. However, the plan for the formation of the BLU entity underwent a transformation into MIP in January 2023. Find out more our insights about this topic in our Legal Brief Publication.
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