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Indonesia gradually lifts coal export ban
The government started easing restrictions by allowing 14 coal-loaded vessels bound for exports to set sail on Tuesday.
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Domestic use only: Heavy equipment is used to stockpile coal at the Kertapati coal terminal belonging to state-owned company PT Bukit Asam in Palembang, South Sumatra, on Tuesday. The government has imposed a one-month coal export ban starting on Jan. 1. (Antara/Nova Wahyudi)
The government plans to gradually lift its coal export ban on Wednesday after securing enough supplies for domestic needs.
The Office of the Coordinating Maritime Affairs and Investment Minister said on Monday that the government would begin by allowing 14 coal-loaded vessels bound for exports to set sail on Tuesday while other such vessels transported their supplies to domestic power plants.
“Everything’s good. Supplies [of coal] have reached 15 to 25 days,” Luhut told reporters in Jakarta. “When will we reopen for export? We will gradually see to that starting Wednesday.”
Indonesia, the world's biggest exporter of thermal coal, began a month-long ban on coal shipments on Jan. 1 to address a shortage in state-owned electricity company PLN’s coal supplies, which risked causing widespread blackouts.
The ban drove coal prices in China and Australia higher last week, while scores of vessels slated to carry coal to major buyers such as Japan, China, South Korea and India have been in limbo off Kalimantan, home to Indonesia's main coal ports.
However, the coordinating ministry, Trade Ministry, energy ministry and PLN still need to determine how to ensure long-term domestic market obligation (DMO) compliance before fully reopening exports. This included making decisions on miners whose coal did not meet PLN specifications.
The coordinating ministry also instructed stakeholders to finalize PLN coal supply contracts for the entire 2022 within 14 days after exports are fully reopened. The energy ministry will monitor compliance on a monthly basis.
