Indonesia Re-opens Coal Export

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 52.Pers/04/SJI/2022

Date: 31 January 2022

Indonesia Re-opens Coal Export

After a month, the Indonesian government has lifted a ban on export by coal companies that hold a Mining Business Permit (IUP), Operation-Production Special Mining Business Permit (Operation-Production IUPK), IUPK as a Continuation of Contract/Agreement Operations and PKP2B. The ban was issued in a bid to guarantee coal supplies to power plants.

Starting February 1st, 2022, the government reopens coal exports for companies that have met the DMO requirement and/or those that have agreed to pay related fines or compensation for the DMO shortfall in 2021 according to Decision of Minister of EMR Number 13.K/HK.021/MEM.B/2022.

"Meanwhile, miners that have not met the DMO in 2021 nor submitted a statement that they agree to pay fines or compensation for the DMO shortfall in 2021 are not yet allowed to export coal," explained Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources (EMR), Ridwan Djamaluddin.

Exports are allowed according to a number of criteria, as follows:

a. For companies that have met the 2021 DMO by 100% or more;

b. For companies that have not met the 2021 DMO by 100% and have submitted a statement agreeing to pay compensation for the DMO shortfall in 2021; and

c. For companies that do not have DMO requirement in 2021 (a zero-ton production plan or realization in 2021).

Ridwan said during the export ban, the government (Ministry of EMR, Coordinating Ministry for Maritime Affairs and Investment, Ministry of Transportation, Ministry of Trade, Ministry of Finance, and the Financial Development and Supervisory Board (BPKP)), state electricity company PT PLN (Persero), Indonesian National Shipowners Association (INSA), and coal companies have worked hard to ensure supplies to coal power plants are delivered smoothly to meet the needs in January 2022. (IY)

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