Low Coal Prices, Bahlil Consider Export Restriction Options

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that his party opened up opportunities to limit coal exports considering the low price of ICE Newcastle.

"If our prices continue to be suppressed, it is also possible that we will think about tightening exports," Bahlil said at a press conference in Jakarta, Monday, February 3.

Bahlil said he had also asked the Director General of Mineral and Coal (Minerba) Tri Winarno to carefully calculate the price of Indonesian reference coal (HBA) by referring to the ICE price.

The former chairman of HIPMI said that currently the reference price set by the government is far below international prices.

The tightening of export permits, he said, is intended to affect international market prices.

"When do we have coal prices determined by neighboring countries? Our countries must be sovereign to determine their own commodity prices," he continued.

Bahlil also threatened not to issue export permits for exporters who did not heed government policies.

"If they don't want it, we don't have to (issue) allow exports. When it comes to coal prices in our country, we make it cheaper?," said Bahlil.

Just so you know, Indonesia's coal production throughout 2024 reached 836 million tons, or grew 117 percent of the target set at 710 tons.

Meanwhile, Indonesia's coal exports throughout 2024 were recorded at 555 million tons of coal.