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Coal Export Ban to Prevent Mass Blackouts

The export ban was enforced to guarantee meeting the coal demand of steam power plants (PLTUs) belonging to state electricity company PT PLN (Persero) and independent power producers (IPP).

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In this Sept. 27, 2021 file photo, steam billows out of the cooling towers at a coal-fired power station in Nanjing in east China's Jiangsu province. The world's facing an energy crunch. Europe is feeling it worst as natural gas prices skyrocket to five times normal, forcing some factories to hold back production. Reserves depleted last winter haven't been made up, and chief supplier Russia has held back on supplying extra. Meanwhile, the new Nord Stream 2 gas pipeline won't start operating in time to help if the weather is cold, and there's talk Europe could wind up rationing electricity. China is feeling it too, seeing power outages in some towns.

JAKARTA, KOMPAS — The government expects that the coal export ban during 1-31 Jan. 2022 can overcome the coal supply shortage to meet the needs of power plants. However, mining companies have voiced their objection to the policy. The present situation is seen as an opportunity to review the policy on fulfilling the domestic coal demand, the domestic market obligation (DMO).

Ridwan Jamaludin, the director general of Minerals and Coal at the Energy and Mineral Resources (ESDM) Ministry, said on Saturday (1/1/2022) the export ban on coal was effective for holders of the mining operation license (IUP) or the special mining operation license (IUPK) that were in the production phase, IUPK holders conducting contractual follow-up operations, and working contracts on coal mining exploitation.

Nasrullah Nara