After the total ban on coal exports imposed on 31 December, it appears that the situation is improving with the Indonesian Ministry of Energy and Mineral Resources revoking the export ban for 139 companies.
ndonesia had banned coal exports in January because of concerns that low supplies at domestic power plants could cause widespread blackouts.
As Reuters reports, Indonesia has a so-called Domestic Market Obligation (DMO) policy where coal miners must supply 25% of annual production to state utility Perusahaan Listrik Negara (PLN) at a maximum price of $70 per tonne, well below current market prices.
What is more, as Ridwan Jamaludin, director-general of minerals and coal at the energy ministry explained, without the ban, almost 20 power plants with the power of 10,850 megawatts could have be out.
However, the Britannia Club informs that domestic coal stocks seem to be sufficient and so the export of coal can continue.
The majority of the ships waiting to leave Indonesia are said to be bound for China. Negotiations are still continuing about the long-term supply arrangements and operators should contact local agents for the most up to date information.