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Coal trade in disarray as export ban review delayed
Indonesian authorities postponed a meeting with coal mining companies on Wednesday, leading to disarray on markets as coal miners consider declaring force majeure and scores of ships are moored off the coast.
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This photo taken on September 21, 2021 shows village houses as smoke rises from the chimneys at the Suralaya coal power plant in Cilegon, West Java. (AFP/Bay Ismoyo)
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ndonesian authorities postponed a meeting with coal mining companies on Wednesday, leading to disarray on markets as coal miners consider declaring force majeure over an export ban that has left scores of ships moored off the coast.
Representatives from the Indonesian Coal Mining Association (APBI) said the meeting scheduled for Wednesday, in which Trade Minister Muhammad Lutfi had been expected to review and clarify the ban, had not taken place.
“We have yet to receive further information [on the review meeting] from the government,” APBI executive director Hendra Sinadia told The Jakarta Post on Thursday, adding that mining companies were currently focusing on resolving a supply shortage for state-owned electricity monopoly PLN.
Indonesia, the world's biggest exporter of coal used in electricity generation, said on Saturday it had banned exports of the fuel in January to safeguard domestic power supply.
The export ban was imposed after coal miners had failed to meet the so-called Domestic Market Obligation (DMO), under which they are obliged to sell at least 25 percent of a mine's approved production plan to domestic power producers at a price of no more than US$70 per ton.
Read also: Indonesia bans coal exports in January over domestic supply worries
PLN says it needs to secure 20 million tons of coal to ensure supply for 20 days. As of Wednesday, it has secured 13.9 million tons.
