Bahlil Ensures The Ban On Coal Exports Will Not Affect Investment

Minister of Investment/Head of the Investment Coordinating Board (BPKM) Bahlil Lahadalia/PHOTO: Mery Handayani-VOI

JAKARTA - The Minister of Investment/Head of the Investment Coordinating Board (BPKM) Bahlil Lahadalia ensures that the ban on coal exports to foreign countries issued by the Ministry of Energy and Mineral Resources will not have a significant impact on investment in the country. "No, no, it will have no effect on investment," he said in a press conference at the BKPM office, Jakarta, Friday, January 7. Bahlil said the policy of banning coal exports was taken so that the domestic market obligation (DMO) can be fulfilled. Bahlil also said the export ban policy was also an effort government in ensuring that electricity in the country remains on. "What if the DMO is not fulfilled? Which is worse, we stop coal exports, our electricity goes on, or we export, our electricity goes out? Try it. So we have to get our nationalism out. dong," he said.

As a former entrepreneur, Bahlil said he was pro investment. Even so, Bahlil admits that he loves his own country more. Therefore, according to him, there is no problem with the government imposing a temporary ban on coal exports. "To be honest, I am pro-investment. But I love my country more than such matters. First, fulfill the DMO and it's in the rules," he explained.

Bahlil said he was in constant communication with the Minister of Energy and Mineral Resources regarding the matter. He also believes that the government is also responsible for finding the best solution. However, the government also continues to pay attention to other aspirations, including other countries. "My hope is that domestic needs will exist and then exports will continue. I know many countries have sent letters to prevent export bans from happening. Because now is winter, let alone a crisis. world energy. We are also responsible for the world's interests. But we ask for an acceleration to fulfill domestic stocks after which we export, "he said. As is known, one of the countries that protested the policy of banning coal exports was Japan. The protest was stated in a letter sent by the Japanese Ambassador to Indonesia Kanasugi Kenji to the Minister of Energy and Mineral Resources Arifin Tasrif. In the letter, Kenji asked the Ministry of Energy and Mineral Resources to lift the ban on coal exports. This is because the ban is considered to have a serious impact on the economic activities and daily lives of Japanese people. The ban on coal exports is stated in the letter from the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources B-1605/MB.05/DJB.B/2021 which was published on December 31, 2021. The government officially prohibits coal mining companies from exporting coal to foreign countries.

For information, several Japanese power plants and manufactures rely on coal supplies from Indonesia. Moreover, Japan is currently entering winter where demand for coal is increasing. Kenji said because of the letter, export permits for coal exports to Japan have not been granted, and ships that have completed cargo handling cannot leave ports since January 1.

"Japan's industry regularly imports coal from Indonesia for power generation and manufacturing (about 2 million tonnes per month), and the sudden export ban had a serious impact on Japan's economic activities as well as people's daily lives," Kenji wrote in his letter, quoted Thursday, January 6th.