Paper Title
Policy Recommendation for Coal Blending Facility to Improve Coal Quality and Reserve in Indonesia

Abstract
This research aims to provide policy recommendations for the Government of Indonesia to build Coal Blending Facility (CBF) to maximize the coal production in the country. The background of this study is due to the current Domestic Market Obligation (DMO) policy has not been able to fulfill domestic requirement between 2015 and 2017. The unmet target of DMO policy shows that the policy is not fully effective. One of the causes is the gap between the coal specification of the mine, especially the calorific coal less than 4,000 kcal / kg, with the specifications required by domestic end-users. This situation has become a dilemma because half of Indonesia's coal reserves are low-calorie coal and have not been fully utilized. Moreover, this condition can inhibit the shift of coal management paradigm set by the Government, where coal is not only limited to commodities, but more emphasized as development capital. This research uses qualitative approach to understand the perspective of the key stakeholders through purposive interviews. In analyzing the problem, this research uses Soft Systems Methodology approach to explore the complex problematic situations that arise in human activity.To solve a problem,Policy Analysis framework is used to generate recommendations. Keywords - Coal Blending Facility, Domestic Market Obligation, Policy Analysis,Soft System Methodology