Indonesia wants to ensure coal reserves before resuming exports

Excavators pile coal in a storage area at an Indonesian power plant in Suralaya, Banten province. (Photo: Reuters)

Jakarta (VNA) – Indonesian Minister of Investment Bahlil Lahadalia has revealed that there is a possibility that the coal export faucet could be opened next week if the stock and reserves meet PT PLN power plant’s needs and domestic demands.

According to Bahlil, he communicated with the Minister of Energy and Mineral Resources to monitor the development of coal supply for the domestic electricity sector.

Moreover, many countries have submitted objection letters regarding the policy of banning coal exports because it is still winter and there is an energy crisis.

Earlier, Indonesia's Ministry of Energy and Mineral Resources banned coal export from January 1-31 on all exporters holding IUP (Mining Business Licence), IUPK Production (Operation Special Mining Business Licence) and PKP2B (Concession Agreement).

The ministry said the policy aims to ensure fuel supply to thermal power plants in the country and force domestic firms to complete their obligation of providing 25 percent of annual production to the domestic market.

The government of Indonesia has revoked more than 2,000 mining, plantation and forest-use permits which were deemed to not be in accordance with the original function, Indonesian President Joko Widodo announced on January 6./.

VNA