Indonesia bans coal exports until January 31
TEMPO.CO, Jakarta – Indonesia’s Ministry of Energy and Mineral Resources has temporarily banned coal exports from January 1 to January 31, 2022, in order to ensure the availability of coal stocks for national power plants.
The export ban targets holders of mining permits (IUP) and coal mine company employment contracts (PKP2B), the director general of minerals and coal at the ministry Ridwan Jamaludin said on Saturday in a statement.
The drop in coal supply could affect more than 10 million customers of the public electricity company PT PLN (Persero), he explained.
This figure constitutes both the general public and the industry, he said.
If the export ban is not enforced, it could cause an outage in 20 coal-fired power plants generating 10,850 megawatts of electricity, he said.
“This could potentially disrupt the stability of the national economy. When the coal supply for power plants is sufficient or returns to normal, then we can export,” Jamaludin informed.
“We will assess it after January 5, 2022,” he said.
The government has reminded charcoal contractors to honor their commitment to supply coal to PLN, he added.
However, in practice, the supply of coal for PLN has been lower than the percentage of sale of compulsory coal for domestic needs (DMO) each month, he pointed out.
This caused PLN to have a coal supply shortfall at the end of 2021, he informed.
According to Jamaludin, a secure supply of coal to the PLN coal-fired power plant is more than 20 days of operation.
Until January 1, 2022, of the 5.1 million tonnes targeted by the government, only 35,000 tonnes have been delivered, less than one percent, he noted.
“This figure could not meet the needs of all power plants. If we do not make a strategic move, there will be a general blackout,” he said.
The government issued Ministerial Decision No.139.K / HK.02 / MEM.B / 2021 on Energy and Mineral Resources which specifically regulates the obligation to meet national demand for coal, which is at least 25 % of agreed production plan, he said. noted.
Meanwhile, the price of coal for supplying electricity to the general public is US $ 70 per metric tonne, he added.
Jamaludin stressed that meeting the obligation to meet national demand for coal would preserve the investment climate and the national economy.
In addition, he informed that the charcoal contractors understand and support the policy of temporarily banning coal exports to support domestic demand for coal.
Like a coal entrepreneur, he urged PLN to correct the coal supply mechanism in order to improve it.
“At the same time, we also ask PLN to make an effort and take a step to support reliable and quality electric power supply for all of Indonesia,” he noted.
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