Indonesia To Allow Selected Operators To Resume Coal Exports

Indonesia to allow selected operators to resume coal exports

Jakarta, (UrduPoint / Pakistan Point News - 13th Jan, 2022 ) :Indonesia, the world's largest thermal coal exporter, said it will allow some operators to resume shipping out the commodity, a senior minister said Thursday, pointing to a relaxation of a ban decreed on January 1.

Thirty-seven vessels loaded with coal have already been released for export as of Wednesday, according to a statement by coordinating Minister Luhut Pandjaitan.

Indonesia's export ban was imposed after coal miners failed to meet their obligations towards the domestic market and state electricity company PLN warned of looming blackouts.

The minister said companies that have met the requirements to sell a portion of their 2021 output to the state electricity company for domestic power generation would be allowed to resume exporting.

But fines will be imposed against operators who had failed to meet their contractual obligation to PLN.

The relaxation was allowed after the domestic coal reserve for power supply reached a safe level, he said.

The ministry said it is currently making an assessment of companies' contractual obligations fulfilment and would announce soon which will be allowed to resume exports. No indication was given about the time the process will take.