Indonesia meets with industry on charcoal distribution issues and export ban


Workers walk near a tugboat carrying barges of coal at a port in Palembang, South Sumatra province, Indonesia, Jan 4, 2022, in this photo taken by Antara Foto. Antara Foto / Nova Wahyudi / via REUTERS

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JAKARTA, Jan.9 (Reuters) – Indonesia has yet to take a decision on lifting its ban on coal exports as authorities discuss logistical issues that have slowed efforts to distribute coal to power plants electricity, a mining group executive said on Sunday.

The world’s largest thermal coal exporter suspended coal exports on January 1 after Indonesia’s state-owned electricity company reported dangerously low fuel inventory levels, putting Southeast Asia’s largest economy on hold. Is on the verge of widespread blackouts. Read more

The move had pushed up global fuel prices last week, with international buyers closely monitoring talks between Indonesian officials and the local coal industry. An Energy Ministry official pledged to review the ban after January 5 read more

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Indonesia’s Maritime Affairs and Investment Coordination Ministry met again with miners and other related industries on Sunday, but has yet to make a decision on resuming exports, said Hendra Sinadia, executive director of the association. Indonesian coal miners.

“One of the issues discussed was the limited availability of ships to transport coal to power plants,” he said.

Senior Minister Luhut Pandjaitan said the emergency of supplying coal to local power plants was over, but the government still had to continue discussing policies in this area. Read more

The discussion will resume on Monday, a spokesperson for Minister Luhut said on Sunday.

Last week, the Japanese Embassy in Jakarta called on the Indonesian Ministry of Energy to exclude high calorific coal from the export ban because it is not used by local power plants and d ‘authorize five ships already loaded with coal to leave for Japan.

South Korea’s Trade Minister Yeo Han-koo on Friday held a video call with his Indonesian counterpart to express “his concerns over Indonesia’s coal export ban and urged the cooperation of the Indonesian government for a rapid resumption of coal shipments, ”the South Korean news agency Yonhap reported.

Japan and South Korea are among the top destinations for Indonesian coal and, along with China and India, they accounted for 73% of its exports in 2021, according to Kpler ship tracking data.

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Report by Fransiska Nangoy Editing by Raissa Kasolowsky

Our Standards: Thomson Reuters Trust Principles.


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