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Wednesday, 05 January 2022 12:13

Indonesia Bans Coal Export until the End of January

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The Indonesian government through the Energy and Mineral Resources Ministry is temporarily banning coal export until January 31st, 2022 to guarantee coal supply for power plants. That was stated by Director General for Mineral and Coal at the ministry, Ridwan Jamaludin in a statement in Jakarta on Saturday (1/1).

Ridwan Jamaludin said, if export ban is not imposed, 20 coal power plants with 10,850 megawatt will shut down. He added that the coal shortage can affect more than 10 million customers of state-owned power company, PT PLN, from the people to the industries. This can disturb national economic stability. However, if the coal supply for the power plant is already fulfilled, the export ban will be lifted sooner. The government will evaluate after January 5th, 2022.

The government has several times reminded coal businesspeople to keep fulfilling their commitment in supplying coal to PT PLN. However, monthly coal supply for PLN is below the Domestic Market Obligation. That resulted in a coal shortage for PLN power plants at the end of the year.

According to Ridwan, a secure coal supply for a power plant is above 20 operational days. Until January 1st, 2022, from the 5.1 million metric ton government's obligation, only 35 thousand metric ton or less than 1,0 percent was fulfilled. This certainly could not fulfill the needs of every available coal power plant.

Ridwan further remarked that coal businesspeople understand and support the temporary coal export ban. He affirmed that if domestic coal obligation is followed, the national economy and investment climate will be maintained. At the same time, the ministry has asked PT PLN to do business efficiency and activities that support quality power for all Indonesians.

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