Indonesia to lift ban on coal export in phases


FE ONLINE DESK | Published: January 11, 2022 12:30:01


Indonesia to lift ban on coal export in phases

Indonesian authorities have said that the country will resume coal export in phases starting from Wednesday, with dozens of ships carrying coal cleared to depart on Tuesday.

Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan told a press conference late Monday that the official regulation to lift the coal export ban was being finalised, reports Xinhua.

The world's largest thermal coal exporter imposed on Dec. 31, 2021, a policy to ban coal exports for the entire month of January this year to avert a looming power crisis in the country that could lead to widespread blackouts.

The government said the crisis occurred because most mining companies had failed to meet their domestic market obligation, under which they must supply 25 percent of annual production to the local market.

Pandjaitan said the ban would be lifted as the Southeast Asian country's domestic coal reserves has gradually increased and "the situation was getting better."

The decision to resume coal exports also came after increasing pressures from Asian countries, including Japan, South Korea and the Philippines that rely on Indonesia's coal for their energy supplies, and protests from mining companies as the ban would cause them to lose millions of US dollars.

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