Indonesia bans coal exports to avert blackout among 10 million customers

Jakarta (Indonesia Window) – The Indonesia government temporarily bans coal exports from January 1 to 31, 2022, to ensure the supply for power plants in the country.

“If the export ban is not implemented, almost 20 steam power plants with capacities of around 10,850 megawatts (MW) would be down,” Director General for Mineral and Coal at the Ministry of Energy and Mineral Resources Ridwan Jamaludin said at an event with coal business players here on Saturday (Jan. 1).

The government, Ridwan added, has reminded coal business actors to fulfill their commitments in supplying coal to the national state-owned electricity company (PLN).

However, the monthly coal supply to PLN is below the Domestic Market Obligation (DMO) percentage.

This lack of supply would have an impact on more than 10 million PLN’s customers, including industries in Java, Madura, Bali and outside these islands.

Of the 5.1 million metric tons (MT) of coal designated for the DMO, only 35,000 or less than 1 percent was supplied until January 1, 2022.

“This amount cannot meet the needs of existing power plants. If strategic steps are not taken immediately, there would be widespread blackouts,” Ridwan said.

The Indonesian government has issued a ministerial decree which regulates specifically the obligation to fulfill domestic needs for coal at least 25 percent of the approved production plan.

Meanwhile, the selling price of coal for electric powers for public use has been set 70 U.S. dollars per metric ton.

In particular, Ridwan emphasized that compliance in fulfilling the obligation to supply coal for domestic needs would maintain the national investment climate and economy.

Reporting by Raihana Radhwa