Operators likely to resume coal exports after Indonesia lifts ban

Operators likely to resume coal exports after Indonesia lifts ban

/ Energy & Power / Thursday, 13 January 2022 13:15

In a move that has brought much relief to several countries reliant on Indonesia's coal exports, the country has relaxed the ban decreed on January 1 on coal exports and have allowed some operators to resume shipping out the commodity.

Thirty-seven vessels loaded with coal have already been released for export as of Wednesday as per official statement.

The ban decision was imposed after coal miners failed to meet their obligation to set aside 25% of output for the domestic market, putting some 10 million customers at risk of widespread blackouts.

A senior minister said companies that have met the requirements to sell a portion of their 2021 output to the state electricity company for domestic power generation would be allowed to resume exporting.
But fines will be imposed against operators who had failed to meet their contractual obligation to PLN.

The relaxation was allowed after the domestic coal reserve for power supply reached a safe level, he said.  The ministry is currently assessing the companies' contractual obligations fulfilment and is slated to make an announcement about who all can resume the exports.

The minister in a statement has urged that the process be supervised closely so that such incidents are not repeated the future.

Coal producers have little incentive to sell coal on the domestic market where the price is capped at $70 a metric tonne -- far below global prices.

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