Coal sector: Government set coal domestic market obligation (DMO) of 128mn tons in 2019, up 11.3% from 115mn tons in 2018. Power generations are expected to consume 95.7mn tons (75% of total), cement industry to consume 16.2mn tons (12.6%), pulp and paper industry to consume 6.2mn tons (4.9%), metal industry 5.4mn tons (4.2%) and the remaining 3.3% will be consumed by textile, fertilizer and briquette industries. DMO for 2019 was set at 26.68% of 2019 coal production target of 479.84mn tons. (Bisnis Indonesia).
Comment: This is inline with our view of 480mn tons coal production and 130mn tons domestic coal consumption in 2019. Currently, we are reviewing our forecast and valuation for coal mining companies within our coverage.
Sumber : IPS RESEARCH
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