Indonesia says may allow coal exports to resume by 11 Jan 22

• Indonesia’s government may allow coal exports by 11 Jan 22, a senior minister said on 10 Jan 22, as pressure mounts on the world’s biggest thermal coal exporter to end a ban imposed at New Year.
• The suspension, which came after state power utility PLN reported critically low inventory levels of the fuel, sent global coal prices higher last week and prompted calls by Japan, South Korea and the Philippines for it to be eased.
• “End of 10 or 11 Jan 22, we can release some of the big vessels,” Coordinating Minister of Maritime and Investment Affairs Luhut Pandjaitan said in an interview with CNBC.
• Energy Minister Arifin Tasrif had earlier on 10 Jan 22 told Japan’s industry minister Koichi Hagiuda that he hoped Indonesia may come to a decision in the coming days.
• Shipping companies were working to reach the best solution to meet PLN’s coal demand, said Ms Carmelita Hartoto, chairperson of Indonesia Shipowners Association.
• Mr Pandu Sjahrir, chairman of Indonesia Coal Miners Association (ICMA), said PLN is estimated to have 10 days of coal supply. The power company has said it had secured 13.9 million tonnes of coal but wants 20 million tonnes to reach a 20-day inventory level for its power plants.
• “We are ready to supply coal for the amount that PLN wants,” Mr Pandu said. “The issue now is about shipment, but there should be a solution for this soon.”
• It later emerged that Indonesia allowed 14 vessels loaded with coal to depart as soon as they secure verifications from mining and transport authorities, according to Luhut, in an early sign that the export ban may be easing.
• The government will conduct a review on 12 Jan 22 where if it decides to scrap the ban, it will do so gradually as it considers how the resumption affects compliance with the so-called Domestic Market Obligation (DMO) rules, Luhut added.
• Luhut has said the government will come up with a new formula for the pricing so PLN would pay at market price. Such a formula may involve collecting a coal levy, the statement said, with authorities set to discuss the plan in a week.
• Authorities will evaluate the DMO compliance every month, the statement added. Luhut also advised PLN to procure coal directly from credible miners, as opposed to traders, and to use long-term contracts to lock in supplies instead.

External Link : https://www.straitstimes.com/asia/se-asia/indonesia-says-may-allow-coal-exports-to-resume-by-tuesday

External Link : https://www.channelnewsasia.com/business/indonesia-eases-coal-export-ban-after-10-days-2426321