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Indonesia’s Ministry of Energy and Mineral Resources has 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), informed the Vietnam Trade Office in Indonesia.

The office advised Vietnamese importers to promptly discuss with their Indonesian partners to seek solutions for orders subjected to be delivered in January.

Alongside, they should keep a close eye on policy changes related to coal export from the Indonesia’s Ministry of Energy and Mineral Resource at http://www.esdm.go.id or through the Vietnamese Trade Office in Indonesia, it said.

The office held that the Indonesian Government may consider adjustments of the policy due to pressure from Indonesian coal business who have been surprised by the policy.

According to Indonesia’s Ministry of Energy and Mineral Resources, 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 ministry cited that the firms have supplied only 35,000 tonnes of coal to the domestic market, much lower than the targeted volume of 5.1 million tonnes, threatening the operation of 20 thermal power plants which have a total capacity of 10,850 MW.

As of December 17, Indonesia had seen coal production of 581.17 million tonnes, while its coal export volume had exceeded total export volume in the whole 2020 at 565.69 million tonnes./.