Japan And Korea Protest Indonesia Stops Coal Exports, Luhut Says

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan (Photo: Antara)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said the government had communicated with neighboring countries asking Indonesia to lift the ban on coal exports.

"I think it's a matter for the Trade Minister to (communicate) the request to lift the export ban", said Luhut at the Coordinating Ministry for Maritime Affairs and Investment Building on Friday, January 7, 2022.

Two countries object to Indonesia's policy. The two are the Government of Japan and the Government of Korea. The two countries' official statements were submitted to the Minister of Energy and Mineral Resources Arifin Tasrif and the Minister of Trade, Muhammad Lutfi.

Japan and Korea protested Indonesia's policy because their coal stocks were running low. Meanwhile, the government decided to stop exports to meet the needs of domestic power plants.

Meanwhile, regarding the decision to revoke the ban on coal exports, Luhut said it has yet to be decided. Because, until now it is still in discussions with the relevant ministries.

Luhut has twice held meetings with the Minister of Energy and Mineral Resources, coal entrepreneurs, PLN, and also the Minister of SOEs regarding this matter. However, he confirmed that Saturday, January 8, there would be a final decision regarding the policy.

"Tomorrow, the meeting is still being finalized, hopefully, tomorrow it can be finished. Everything tomorrow, basically, we will finish it well, we will finish everything", concluded Luhut.

Luhut had said that the government would fully evaluate the coal scheme and governance, particularly in the Domestic Market Obligation (DMO). "We are looking for a permanent solution", said Luhut.

Luhut said the government is currently reviewing the new DMO option scheme. However, he was reluctant to specify what the new DMO scheme would look like.

"At the same time, the new formula that we proposed earlier will be studied by the team", Luhut added.

The Ministry of Energy and Mineral Resources through the Directorate General of Mineral and Coal prohibits all domestic coal companies from exporting. This rule applies from January 1, 2022, to January 31, 2022. This policy was taken because PLN was experiencing a coal supply crisis.