Indonesia has allowed 139 coal mining companies to resume export activities, according to its ministry of energy and mineral resources (ESDM). Director general of minerals and coal Ridwan Djamaluddin told a recent press conference that the export ban was lifted as the firms have met the target percentage of domestic market obligation (DMO) of 100 per cent or more.

“As of today, 139 coal companies that have fulfilled their DMO obligations are no longer prohibited from exporting,” he was quoted as saying by a news agency.

The ESDM minister’s decision on guidelines for banning the use of coal overseas and the imposition of fines have been implemented, Djamaluddin said. Those include lifting the export ban for firms that hold coal mining concession work agreements (PKP2B) and special mining business permits (IUPK) that have met the DMO’s 100-per cent target.

Indonesia has allowed 139 coal mining companies to resume export activities, according to its ministry of energy and mineral resources. Director general of minerals and coal Ridwan Djamaluddin told a recent press conference that the export ban was lifted as the firms have met the target percentage of domestic market obligation (DMO) of 100 per cent or more.

The Indonesian government had earlier banned coal exports to ensure adequate supply of coal for domestic power plants. The ban applies to companies holding mining business licenses (IUP), IUPKs, and PKP2B, and is effective from January 1 to 31, 2022.

If the ban on coal exports was never imposed, at least 20 steam-electric power plants that generate 10,850 MW would have shut down, thereby destabilizing the national economy.

However, the government stated that coal supply for PLTUs had increased day by day, with its volume reaching 16.2 million tons as of mid-January 2022.

The coal material is now available, as the delivery schedule from producers to the power plants has returned to normal, and vessels are ready at the port.

Fibre2Fashion News Desk (DS)