Indonesia Mining & Energy Forum (IMEF) holds that the Mining Institution Partner (MIP) scheme is no longer relevant for implementation, even though domestic market obligation (DMO) coal prices have yet to rise. This is because global coal prices are currently in a downward trend. IMEF Chairman Singgih Widagdo pointed out that the coal MIP scheme was originally designed as a solution to meet domestic coal demand when global market prices surged. After evaluating the overall implementation of coal DMO, MIP was deemed the best option to ensure the reliability of domestic coal supply, Singgih told Bisnis on Wednesday (December 10, 2025).

The MIP scheme refers to the collection and distribution of coal DMO compensation funds via the MIP format. To implement this scheme, the Ministry of Energy and Mineral Resources (ESDM) has appointed three state-owned banks—PT Bank Mandiri (Persero) Tbk. (BMRI), PT Bank Negara Indonesia (Persero) Tbk. (BBNI), and PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI)—as mining institution partners responsible for collecting and distributing coal compensation funds to meet domestic demand. Singgih noted that the scheme was expected to stabilize electricity production costs (BPP), protect the public from tariff hikes, reduce PLN’s financial risks, and be fairer to all miners.

“It is very regrettable that MIP, which could have been implemented when prices were high or the gap between export prices and DMO prices was too wide, is now not applicable,” he said. He emphasized that implementing MIP now is inappropriate because global coal prices have fallen—with current average reference prices, the price gap is not as wide as before. MIP shou...00 per ton, implementing MIP now is not suitable,” he clarified.