APBI Wants Coal-Exporting Companies be Prioritized, Says Director



Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - Executive Director of the Coal Mining Association (APBI) Hendra Sinadia, said that APBI is still waiting for the next development of the coal export policies from the government.

    "We'll wait for further technical matters from the government's last night meeting," said Hendra to Tempo on Thursday, January 13, 2022.

    Until Thursday morning, the Ministry of Maritime Affairs and Investment released a press conference where the coal export is not open yet. Despite the coal supply for the power plants in the country are fulfilled.

    "The point is we want the government to prioritize companies who have fulfilled their Domestic Market Obligation (DMO)," said Hendra.

    On Wednesday, January 12, 2022, the Minister of Maritime Affairs and Investment Luhut Binsar Panjaitan, lead a coordination meeting concerning the coal export ban. During the meeting, the government agreed to dispatch 37 ships to support the export.

    "Considering the [coal] supply in the country is met in the country according to PLN. The 37 ships have been loading per January 12 and has been paid by the buyers and will be released for export," said Luhut in a written statement on Thursday, January 13, 2022.

    Luhut said that it was necessary because the idle coal may potentially start a fire. However, the coal-supplying companies will be fined according to the Ministry of Energy and Mineral Resources (ESDM) decision letter No. 139/2021 if the obligation/DMO to PLN in 2021 is not fulfilled.

    Also during the aforementioned meeting, PLN Director Darmawan Prasodjo, ensured that the company stocks are sufficient, which is 15 HOP or for coal-fired power plants (PLTU) is far from the critical number or 20 HOP.

    In the future, the government will implement several conditions for exporting companies. "First, companies whose DMO reached 100% and completed the sales contract are allowed to resume their export in 2022," said Luhut.

    Meanwhile, companies that have a contract but had bot yet been fulfilled and along with the DMO, would have to pay the fine stated in the ESDM Ministry letter No. 139/2021.

    The fine will be implemented after the decision is issued and the ministry will verify the companies' DMO and contracts in 2021 as the base for the fine's calculation.

    The fine will also be applied to companies whose coal specifications are not met or companies, not under PLN contract.