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Indonesia is the world’s largest exporter of thermal coal, exporting round 400 million tonnes in 2020.
Indonesia has banned coal exports in January as a result of issues over low provides for home powerplants, native media reported on Saturday, citing a letter despatched by the vitality ministry.
The Southeast Asian nation is the world’s largest exporter of thermal coal, exporting round 400 million tonnes in 2020. Its largest prospects are China, India, Japan and South Korea.
Indonesia has a so-called Home Market Obligation (DMO) coverage whereby coal miners should provide 25% of annual manufacturing to state utility Perusahaan Listrik Negara (PLN), at a most worth of $70 per tonne, nicely beneath present market costs.
Within the letter cited by native media Kumparan, the ministry instructed that every one coal at harbours ought to be saved to produce energy vegetation and unbiased energy producers (IPP).
“The export ban will probably be evaluated and reexamined primarily based on the inventory realisation of coal shares for PLN’s energy vegetation and IPP,” the letter mentioned.
The ministry and PLN didn’t instantly reply to Reuters’ requests for remark, whereas the Indonesian Coal Miners Affiliation mentioned it could subject a press release concerning the export ban.
In August 2021, Indonesia suspended coal exports from 34 coal mining corporations it mentioned failed to satisfy home market obligations between January and July final 12 months.
Indonesia is among the many high 10 international inexperienced home fuel emitters and coal makes up round 60% of its vitality sources.
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