Coal is being loaded onto trucks at the KCN Marunda Port in Jakarta, the capital of Indonesia. [Image source=Yonhap News]
[Asia Economy Reporter Jeong Dong-hoon] In January, the Indonesian government, which had banned coal exports, officially resumed coal exports in February but limited this to companies that complied with the Domestic Market Obligation (DMO).
According to local media such as Antara News on the 2nd, the Indonesian Ministry of Energy and Mineral Resources announced the day before that it would fully lift the coal export ban, stating that the coal supply issue for domestic power plants has been resolved.
However, it set the condition that only companies that fulfill the 'Domestic Market Obligation' by supplying 25% of their coal production to the state electricity company can continue to ship coal.
Even companies that cannot supply 100% of their DMO quota in coal can still export if they pay fines and funds equivalent to the shortfall.
Earlier, the Indonesian government took the drastic measure of a complete coal export ban in January after 20 power plants faced power production disruptions due to coal companies violating the DMO and focusing on exports.
The DMO coal price in Indonesia is $70 per ton, but the global market price is more than twice as high, which triggered this situation.
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