As many as 75 coal export vessels have been allowed to depart until Thursday, January 20, 2021 after their coal miners have met 100% domestic market obligation (DMO), the Ministry of Energy and Mineral Resources (ESDM) has said.
As reported earlier, Indonesia implemented an export ban on Jan. 1 as coal inventories at local power plants were at critically low levels. As a result, coal carriers were not allowed to carry coal for export until January 31.
But then, since Mid-January, the government has been relaxing the ban and allowed some carriers to depart if their miners have met the regulation (DMO).
“Until now (January 20, 2021), we have allowed as many as 75 vessels carrying coal from miners having met 100% DMO to depart,” Director General of Minerals and Coal Ridwan Djamaluddin said in a press conference on Thursday, January 20, 2021.
ESDM Ministry has also said that the government has allowed 139 coal mining companies (miners) to resume their export activities as they have met 100% domestic market obligation (DMO).
“As of today, 139 coal companies that have fulfilled their DMO obligations are no longer prohibited from exporting,” Ridwan Djamaluddin said further.
Djamaluddin explained that his team has processed the ESDM Minister’s decision on guidelines for banning the use of coal overseas and the imposition of fines, including withdrawing the export ban for companies that hold Coal Mining Concession Work Agreements (PKP2B) and Special Mining Business Permits (IUPK) that have met the DMO’s 100-percent target.
Earlier, the Indonesian government had banned coal exports to ensure that the supply of coal commodities for power plants in the country is fulfilled.
The ban applies to companies holding mining business licenses (IUP), IUPKs, and PKP2B, and is effective from January 1 to 31, 2022.
The decision was made to save 10 million customers of state electricity firm PT PLN from power outages due to a shortage of coal raw materials used for steam-electric power plants (PLTUs).
If the ban on coal exports was never imposed, at least 20 steam-electric power plants that generate 10,850 MW would have shut down, thereby destabilizing the national economy.
However, the government stated that coal supply for PLTUs had increased day by day, with its volume reaching 16.2 million tons as of mid-January 2022.
The coal material is now available, as the delivery schedule from producers to the power plants has returned to normal, and vessels are ready at the port.
Hence, the Indonesian government is optimistic of coal shortages for power plants no longer occurring.