Indonesia Eases Coal Export Ban That Rattled Global Market
Sumaira FH Published January 10, 2022 | 09:50 PM
Indonesia, the world's top exporter of thermal coal, on Monday said it would ease a ban on exports of the fuel that it imposed to head off looming blackouts
Jakarta, (APP - UrduPoint / Pakistan Point News - 10th Jan, 2022 ) :Indonesia, the world's top exporter of thermal coal, on Monday said it would ease a ban on exports of the fuel that it imposed to head off looming blackouts.
Prices of the fuel lurched higher as ships laden with hundreds of thousands of tonnes of the mineral destined for major markets in Japan, China and India sat in ports and all new production was diverted to domestic power stations.
Japan issued a similar appeal last week.
Indonesia's export ban was imposed after coal miners failed to meet their obligation to set aside 25 percent of output for the domestic market.
Analysts and coal producers blamed mismanagement at Perusahaan Listrik Negara (PLN), the country's state-owned utility, which allowed reserves to fall to as low as three days' supply at some power plants.
"Coal producers do not consistently play by the rules, while at the same time the government does not have a mechanism to control whether the need for coal at PLN has been fulfilled," said Marwan Batubara, director of the Indonesian Resources Studies think tank.
"There is no supervision. There is no mechanism to ensure that each power plant has enough supplies," Batubara said.
To remedy this, Luhut said coal supply contracts would now include freight and delivery.