Smoke and steam billows from the coal-fired power plant owned by Indonesia Power, next to an area for Java 9 and 10 Coal-Fired Steam Power Plant Project in Suralaya, Banten province, Indonesia, July 11, 2020. REUTERS/Willy Kurniawan
JAKARTA, Jan 12 (Reuters) – Indonesia's government is waiting for the state utility firm to declare that it has secured enough coal before it can decide to end an export ban in the world's biggest shipper of thermal coal, the energy minister said on Wednesday.
The suspension was implemented on Jan. 1 to avoid widespread domestic power outages, after state-run Perusahaan Listrik Negara (PLN) reported critically low coal stockpiles, amid complaints that miners were not fulfilling commitments to supply fuel to the firm. read more
The ban has concerned major coal importers, like Japan, South Korea and the Philippines, which fear economic disruption at home.
"PLN was the one who declared the shortage, while we helped secure the supply. Hopefully this afternoon there will be a statement from PLN," energy minister Arifin Tasrif told a media briefing on Wednesday.
Should the government decide to remove the export ban, it will be done partially, he added.
"We will prioritise miners who has fulfilled 100% of their DMO," Arifin added, referring to a "domestic market obligation" where miners must sell 25% of their output to local market at a maximum price of $70 per tonne for power plants.
PLN representatives did not immediately respond to Reuters requests for comment.
Indonesia's senior minister said on Monday the government would allow 14 loaded coal vessels to depart once verified by authorities, in a first sign of policy easing.
However, all 14 loaded coal vessels were still awaiting formal approval as of Wednesday morning, Transportation Ministry official Mugen Suprihatin Sartoto told Reuters.
There were about 120 vessels either loading or waiting to load off Indonesian's coal ports in Kalimantan on the island of Borneo on Wednesday, according to Refinitiv Eikon data.
PLN chief executive Darmawan Prasodjo in a panel discussion on MetroTV late on Tuesday said the company has secured 16.2 million tonnes of coal commitments, while coal that has been delivered was enough for about 7-9 days of operation.
Government officials have said they want PLN to reach coal inventory for at least 15 operation days.
PLN in a statement earlier on Wednesday said it was working to ensure commitments secured during the export ban were delivered on time.
Our Standards: The Thomson Reuters Trust Principles.
Germany will subsidise power bills next year by paying just under 13 billion euros ($12.8 billion) towards the usage fees charged by the four high-voltage transmission grid companies (TSOs), economy minister Robert Habeck said on Wednesday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved