After Being Banned Throughout January, The Government Is Now Reopening The Coal Export Faucet

JAKARTA - After banning coal exports throughout last January, the Indonesian government has now officially reopened the coal export faucet as of February 1, 2022. The Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said the condition of coal supply and supply at steam power plants in the country , is now getting better.

"As of February 1, 2022, the government has decided to reopen coal exports," he said in a statement quoted in Jakarta, Tuesday, February 1.

The policy for opening export faucets is only given to companies that have fulfilled their domestic market obligation (DMO) percentage of sales and have submitted a statement that they are willing to pay fines or compensation funds for DMO shortages in 2021.

Meanwhile, 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 deficiency have not been allowed to sell coal abroad.

Export permits are granted to mining companies that have met the criteria, namely the realization of the 2021 DMO of 100 percent or more, the realization of the 2021 DMO of less than 100 percent and has submitted a statement letter willing to pay compensation funds for the shortage of the 2021 DMO, and has no obligation for the 2021 DMO.

During the coal export ban period last month, the government, PT PLN, the Indonesian National Shipowners Association (INSA), and coal supply companies have worked hard to ensure that coal supplies to the power plant can be delivered smoothly to meet coal demand in January 2022.