Indonesia suspends coal exports

The Indonesian government has banned coal exports throughout January due to concerns that about 20 thermoelectric plants in Indonesia could run out of fuel, resulting in large-scale power outages.

Indonesia has large coal mines and is the largest exporter of coal for combustion at power plants: it supplies it to countries such as China, India, Japan and South Korea. However, since 60 percent of the energy used in Indonesia is produced from coal, the companies that extract it must hold a share for national needs and sell it to the state at a price lower than the market price. About 25 percent of their production is to be sold to state-owned energy company Perusahan Listrick Negara (PLN) for up to $ 70 per tonne.

However, Less than 1 percent was provided Indonesia’s power plants need 5.1 million tonnes of coal to operate in the next few days. Due to this it was decided to suspend exports. The government has not said when the coal miners will be able to return to sell abroad, but has promised that the ban will end after January 5. The government had already suspended exports in August to 34 mining companies that did not comply with the quota rule between January and July 2021.

In recent months, the demand for coal – one of the most polluting fossil fuels and one that it produces Excessive greenhouse gas emissions – has grown globally due Complex energy crisis Passing through different parts of the world. According to the International Energy Agency (IEA), which covers 30 countries, demand for coal will never be higher than it was in 2021 and will continue in 2022.

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The Association of Indonesian Coal Mining Companies has asked the Ministry of Energy to lift the suspension of exports, fearing that their customers may return to other exporting countries. According to Ahmad Zhdi Dwi Kusuma, Energy Department Expert Interviewed Reuters, The price of coal will rise further in the coming weeks as Indonesian exports stop, and orders for Russian, Australian and Mongolian companies will increase.

As part of its promise to reduce global greenhouse gas emissions, Indonesia now pledges to build new coal-fired power plants by 2023. Carbon neutral – The level of CO per ton2 Or another greenhouse gas that will be emitted into the atmosphere – by 2060. However, this did not interfere with the construction of a large coal-fired power plant on the island of Java, which, once completed, would be the largest in the Southeast. Asia.

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