Criticized For Allowing Coal Exports Again, Luhut: Yes, We Need Money

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Doc. Kemenko Marves)

JAKARTA - The Indonesian government's decision to lift the ban on coal exports has received mixed responses from various parties.

Responding to criticisms related to the decision to lift the export ban, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized that this decision was taken after holding a coordination meeting with several relevant ministries and institutions including the Ministry of Trade, Ministry of Energy and Mineral Resources, Ministry of Finance and PLN.

"If someone says why now exports are open? Yes, we need money," he said after attending a coordination meeting at his office, Wednesday, January 12.

Not only involving relevant ministries and institutions, Luhut also collaborated with the Financial and Development Supervisory Agency (BPKP) to conduct an audit of the coal procurement process for PLN.

"Nothing related to the coal issue was absent. We even involved Hubla and Bakamla," he explained.

Furthermore, Luhut emphasized that he would impose penalties and fines for companies that do not carry out Domestic Market Obligations (DMO).

"The problem of inefficiency has existed for decades and has been audited by BPKP," concluded Luhut.

Previously, the government banned coal exports for a month in the period 1-31 January 2022. This was to meet PLN's coal needs, which currently have very low supply.

The temporary ban on coal exports is stated in letter Number B-1605/MB.05/DJB.B/2021 issued by the Ministry of Energy and Mineral Resources through the Directorate General of Mineral and Coal (Ditjen Minerba).