Palembang, The Indonesia Post – The government through the Ministry of Energy and Mineral Resources (ESDM), has decided to prohibit all coal companies from exporting starting January 1, 2022.
This was done because of concerns about the low supply for domestic power plants.
Based on a letter signed by the Director General of Mineral and Coal Ridwan Djamaluddin, the ban on coal exports will be in effect until January 31, 2022.
Responding to this, the legislative Council (DPRD) of South Sumatra (Sumsel) hopes that the ban will not harm coal companies, both state-owned and private.
“We see that at the end of 2021 the government through the Ministry of Energy and Mineral Resources prohibits one month from not exporting coal, and positively we have to see that the government has gone through a study for the ban because it meets domestic supply needs,” said Chairman of Commission IV DPRD Sumsel MF Ridho , Tuesday (4/1).
Ridho explained that the needs are focused on supplying power plants in Indonesia, starting from the islands of Java, Sumatra and Kalimantan.
However, behind the policies issued, he hopes that the government will also review the contracts signed by state-owned and private companies for the supply of export coal.
“What is clear is whether this one month does not interfere with the articles of the company contract agreement, which will later result in a default by an outside party to fulfill the agreed stock. However, as long as it has been studied and passed, do they (external parties) understand that domestic supply is not disturbed. So that it does not harm companies that have previously established contractual cooperation, so that this policy does not harm any parties,” he said.
The chairman of the Democratic Party faction in the South Sumatra DPRD added, if in the future the export ban is extended, it is hoped that it will be discussed with existing coal companies, so that there is a common solution.
“If the ban is extended, the government will discuss it with existing companies, including company partners, so that this policy will not harm certain parties. Including the need to study if not export, the use of existing natural resources still has economic value and a mutually beneficial business, “said Ridho.
The head of the NasDem Faction at the South Sumatra DPRD, Dr Syamsul Bahri, said the same thing, admitting that there will certainly be impacts related to the export ban, and hopes that the export faucets will be reopened later.
“Obviously there will be an impact, but the amount will be studied first, but of course there will be an impact,” said the member of Commission IV of the South Sumatra DPRD. (ojn/bbs/ril)
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