(Bloomberg) — Indonesia, one of the world’s top exporters of thermal coal, is pausing exports of the fuel in January to secure domestic supply as power plants are running low on supplies, the Kumparan news portal reported.
The energy and mineral resources ministry ordered coal miners and exporters to divert coal from loaded ships at ports to power plants to prevent disruption to the national electricity system, Kumparan said, citing a letter from Ridwan Djamaluddin, director general of minerals and coal.
The ministry will evaluate and review the exports halt depending on the ongoing coal supply at power plants, the report said. Djamaluddin didn’t reply to calls and text messages from Bloomberg News.
Indonesia estimates domestic coal production to reach up to 644 million tons in 2022, with consumption forecast at 190 million tons.
The government has set a ceiling price for coal sold to power plants at $70 per ton, while also requiring producers to supply at least 25% of their output to the domestic market. Firms that don’t comply could be prevented from exporting coal or fined.
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