Indonesia government today, Tuesday, February 1, reopened export of coal and lifted the ban after it was enforced in January to help domestic power plants replenish their coal supply.
But, this is only subjected to mining companies (miners) that have met domestic market obligation (DMO) which is accounted to 25% of their production volume. Those who fails to meet DMO, does not be allowed to export yet.
“As per February 1, 2022, the government has decided to reopen coal exports,” Energy and Mineral Resources Ministry’s Director General of Mineral and Coal, Ridwan Djamaluddin, said as Antara quoted.
Djamaluddin also confirmed that coal stocks and supply in steam-powered power plants, which rely on coal as fuel, have been improving.
Despite the lift on the ban, the government will allow only companies that have fulfilled their domestic market obligation or have submitted a statement confirming willingness to pay a compensation fee for failing to fulfil the domestic market obligation in 2021, he remarked.
Companies that failed to fulfil the market obligation in 2021 and have yet to submit the statement confirming willingness to pay compensation fee are not allowed to sell their coal products to foreign markets, he noted.
The director general informed that the export permit will be granted only to companies, with domestic market obligation having reached or surpassed 100-percent realization in 2021 or to companies that failed to fulfil their market obligation in 2021 but have submitted the statement confirming compensation fee payment.
Earlier, the government had imposed a coal export ban effective on January 1-31, 2022, as domestic coal companies failed to adhere to their domestic market obligation in 2021, thereby causing a deficit of coal supply in steam-powered power plants.
During the export ban, the government, state-owned electricity company PT PLN, the Indonesian National Shipowners Association (INSA), and coal companies have put in efforts in securing coal supply and stock to steam-powered power plants for January 2022.