Jakarta, Indonesia CNBC - Coordinating Minister for Maritime and Investment Luhut Binsar Pandjaitan upheld a ban on coal exports that has not been fully revoked. Exports will be permitted for coal companies that have fulfilled their obligations.

This was decided based on the results of a coordination meeting chaired by Coordinating Minister Luhut regarding the ban on coal exports and the fulfillment of PLN's coal, yesterday, Wednesday (12/01/2022).

The coordination meeting also decided several things, one of which was related to the conditions for coal companies to re-export.

In the future, coal companies wishing to export are required to meet the requirements set by the government as follows:

a. First, for coal companies that have fulfilled their sales contracts to PLN and their DMO obligations are 100% in 2021, they will be allowed to start exporting in 2022.

b. Second, for coal companies that already have a contract with PLN but have not fulfilled their contractual obligations and the DMO for 2021, they must fulfill the penalty obligation in accordance with the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021. The value of the calculation of the fine will be applied from the date of the issuance of the Ministerial Decree.

c. Third, for coal companies whose coal specifications do not match the specifications of PLN's coal requirements or do not have a contract with PLN in 2021, they will also be subject to a fine with the same mechanism as in the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021, based on the volume of DMO allocation given. to each of these companies.

The Ministry of Energy and Mineral Resources will verify the fulfillment of the DMO and PLN contracts in 2021 for each coal company, as the basis for the calculations in the points above.

In the Coordination Meeting which was attended by the Minister of Trade, Minister of Energy and Mineral Resources, Head of the Financial and Development Supervisory Agency (BPKP), Bakamla, and several other high-ranking government institutions, Coordinating Minister Luhut reminded all parties to move to monitor and ensure implementation in the field.

"I really ask for joint supervision so that this can also be a moment for all of us to improve governance conditions in the country and things like this don't need to be repeated in the future," said Coordinating Minister Luhut, as quoted from the official statement from the Coordinating Ministry for Maritime Affairs and Fisheries. Thursday (13/01/2022).

In the coordination meeting, the President Director of PT PLN (Persero) Darmawan Prasodjo said that with the support of the government and relevant stakeholders, intervention actions had been successfully carried out to ensure the current stock of coal for power plants was in a safe condition.

PLN reports that the status of the coal stock at the PLTU is currently at a minimum of 15 operating days (HOP) or for remote and critical PLTUs at 20 HOP.

Based on the PLN report, this coordination meeting also decided that 37 coal export ships that had been loading as of January 12, 2022 and had been paid for by the buyer, would be released for export.

This decision was taken to prevent fires if the coal is left too long.

"Based on reports from PLN as well as input from various K/L (Ministries/Institutions), in this coordination meeting the following decisions were taken, one, considering the domestic stock is already in a safe condition based on reports from PLN, then for 37 vessels that have carried out loading as of January 12 and has been paid for by the buyer will be released for export. This needs to be done to avoid the risk of fire if the coal is left too long. However, the coal companies that supply the ships will subject to fines based on the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021 if they have not fulfilled their DMO and/or contract obligations to PLN in 2021," explained the statement from the Coordinating Ministry for Maritime Affairs and Fisheries, Thursday (13/01/2022).

Source: CNBNIndonesia.com