Indonesia Allows Coal Exports on Conditions

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Petir Garda Bhwana

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  • The signing of the MoU was virtually carried out with six Indonesian coal companies such as MMSGI, Adaro, Bukit Asam, Banpu, Noble, and ITOCHU. On this occasion, MMSGI was represented by Edmund Tan, Director of Marketing Trading and Logistics of MMSGI and witnessed by the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Panjaitan; representatives from the Chinese Embassy and the Indonesian Plenipotentiary Ambassador to China and Mongolia, Djauhari Oratmangun.

    The signing of the MoU was virtually carried out with six Indonesian coal companies such as MMSGI, Adaro, Bukit Asam, Banpu, Noble, and ITOCHU. On this occasion, MMSGI was represented by Edmund Tan, Director of Marketing Trading and Logistics of MMSGI and witnessed by the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Panjaitan; representatives from the Chinese Embassy and the Indonesian Plenipotentiary Ambassador to China and Mongolia, Djauhari Oratmangun.

    TEMPO.CO, JakartaCoordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that companies that have 100-percent fulfilled their Domestic Market Obligation or DMO are allowed to resume the coal export.

    The decision was made during the coordination meeting on the ban of coal exports and PLN's coal fulfillment on Wednesday, January 12.

    “Coal companies that have fulfilled their contracts with PLN and their DMO in 2021 will be allowed to start exports in 2022,” Luhut said in a written statement, Thursday.

    As for coal companies that already have a contract with state-owned electricity firm PLN but have not fulfilled their contractual obligations and the DMO for 2021, they must meet the penalty obligation in accordance with the Energy and Mineral Resources Ministerial Decree No. 139 of 2021.

    Meanwhile, coal companies producing goods that do not match PLN's coal needs or do not have a contract with the state firm in 2021 would also be subject to a fine according to the same decree based on the DMO allocation given to each of the companies.

    The coordination meeting was attended by the Trade Minister, Minister of Energy and Mineral Resources, Head of the Financial and Development Supervisory Agency (BPKP), Bakamla, and several other high-ranking government institutions. Luhut reminded all parties to jointly monitor and ensure the policy implementation in the field.

    “I really ask this to be monitored together so this can also be a moment for all of us to improve the country’s governance and prevent these issues [related to coal export] from recurring in the future,” said Luhut.

    Read: Electricity Tariffs Won't Be Affected by Changes in PLN Coal Procurement: Govt

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