Indonesia lifts coal export ban as of February 1

Jakarta (Indonesia Window) – The Indonesian government has officially lifted the coal export ban as of February 1, 2022, after previously issuing an export prohibition ban from January 1 to 31, 2022.

The export resumption was taken considering sufficient supply of coal for steam power plants, Director General of Mineral and Coal at the Energy and Mineral Resources Ministry Ridwan Djamaluddin said in a statement here on Tuesday (Feb. 1).

The coal export permit is only given to companies that have fulfilled their Domestic Market Obligation (DMO) of 100 percent or more. The company should also have submitted a statement that it is willing to pay a fine or compensation fund for the lack of DMO in 2021, and does not have a DMO obligation in 2021.

Meanwhile, coal mining companies that have not fulfilled the 2021 DMO and have not submitted a statement that they are willing to pay fines or compensation funds for last year’s DMO shortage are not allowed to export.

During the coal export ban period last month, the government, the state-owned electricity company (PLN), the Indonesian National Shipowners’ Association (INSA), and coal supply companies tried to ensure that the coal supplies to the steam power plants are sufficient to meet fuel needs in January 2022.

Reporting by Indonesia Window