On January 1, it is reported that Indonesia banned coal export in January 2022 because of concerns about China’s insufficient power supply. Indonesia is the world’s largest exporter of thermal coal, with an export volume of about 400 million tons in 2020.
Kumbaran, an Indonesian online media, quoted a letter from the Indonesian Ministry of energy as saying that the Ministry of energy informed all ports to store all coal for supply to Chinese power plants and independent power producers (IPPs).
Indonesia has a so-called China market obligation (DMO) policy in the field of power generation. According to the policy, coal miners must supply 25% of annual production to PLN at a price of up to US $70 (about US $94) per ton. The price is much lower than the current market price.
In the letter, the Indonesian Ministry of energy said that the Ministry of energy would review the coal export ban after assessing the inventory of State Power Corporation and independent power producers. In August 2021, Indonesia suspended the coal export of 34 coal mining companies, pointing out that these 34 companies failed to fulfill their obligations to the Chinese market from January to July 2021.
(interface News)
