Join our crew and become one of the 106,435 members that receive our newsletter.

Indonesia Suspends Coal Exports To Secure Domestic Power Supply

Coal barges are pictured as they queue to be pulled along Mahakam river in Samarinda, East Kalimantan province, Indonesia, August 31, 2019. REUTERS/Willy Kurniawan

Indonesia Suspends Coal Exports To Secure Domestic Power Supply

Total Views: 3562
January 2, 2022

By Eko Listiyorini (Bloomberg) –Indonesia, one of the world’s top exporters of thermal coal, is pausing exports of the fuel in January to secure dwindling supplies for domestic power plants.

The monthlong halt is needed to prevent shutdowns at about 20 power plants in Java, Madura, Bali and other regions, the energy and mineral resources ministry said in a statement posted on its website. The lack of supply could have affected 10 million residential and industry customers and a decision on when to resume exports could come next week.

“When coal supply to power plants are fulfilled then all return to normal, exports will resume. We will evaluate everything after January 5,” Ridwan Djamaluddin, director general of minerals and coal, said in the statement. Out of 5.1 million tons of coal supply to power plants assigned by the government, only 35,000 tons or less than 1% were delivered as of Jan. 1.

Related Article: Shooting the Messenger? Shipping Carries the Can as Investors Shun Coal

Kumparan news portal reported the story earlier, citing a letter from Djamaluddin sent to all coal exporters. In the letter, the 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 reported.

Indonesia estimates domestic coal production in 2022 of as much as 644 million tons, with domestic consumption forecast at 190 million tons.

The government has set a ceiling price for coal sold to local 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. 

© 2022 Bloomberg L.P.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up


Maritime and offshore news trusted by our 106,435 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.