JAKARTA. Through the Ministry of Energy and Mineral Resources (ESDM), the Indonesian government revoked the coal export restriction on February 1, 2022, as the coal supply that will cover the needs of State Electricity Company (PLN) and Independent Power Producer (IPP) finally recovered.

In the future, companies that have met the domestic market obligation (DMO) quota may go back to exporting coals. The export activities are also allowed for companies that declare their willingness to pay fines over last year’s DMO shortfall.

“Meanwhile, the mining companies that have not met the 2021 DMO nor submitted its Statement Letter pertaining to the agreement to pay fines or compensation for their 2021 DMO shortage are not yet allowed to conduct any coal export trading activities,” Ridwan Djamaluddin, Director General of Minerals and Coals of the Ministry of ESDM.

Djamaluddin claimed that throughout the period of coal export restriction policy, beginning January 1, 2022, the Indonesian government has made sure that the coal supply is delivered timely and safely to domestic power plants. In practice, this policy once earned protests as most companies rely on coal export activities to gain income. (KR/ZH)