Indonesia Continues to Study Gold DMO Amidst Export Duty Implementation

Ongoing Assessment of DMO Policy

The Indonesian government is maintaining its examination of the Domestic Market Obligation (DMO) policy for gold commodities. This ongoing assessment comes as the government prepares to implement a 15% export duty on gold starting in 2026. According to Tri Winarno, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, the evaluation is referencing the Mineral Reference Price (HMA) that has already been issued.

Key Considerations in DMO Implementation

The price for the gold DMO will be anchored to the HMA, providing a standardized reference point for the policy. The government is taking a cautious approach, indicating that they are still determining the best course of action. This measured approach suggests a careful balancing of various economic and industrial factors.

Implications for the Mining Sector

The potential implementation of DMO for gold could have significant implications for the mining sector. It may affect the supply dynamics and pricing strategies of gold producers operating in Indonesia. The export duty, combined with DMO, could influence the overall competitiveness of Indonesia's gold exports in the global market.