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Indonesia lifts ban on coal exports

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World Coal,

Reuters is reporting that Indonesia has lifted a coal export ban imposed on 139 companies.

The government of Indonesia imposed the ban at the start of this year with the aim of avoiding a domestic supply crisis and power outages.

As the world’s largest thermal coal exporter, this action has caused widespread concern across the market and among major importers in the region, such as: Japan, the Philippines, and South Korea.

A calibrated easing has now begun for companies which have now met local market sales requirements, known as Domestic Market Obligation (DMO).

According to Reuters, authorities have blamed the coal supply saga on poor compliance with the country’s DMO policy, under which coal miners must sell a quarter of their output to local buyers, with a US$70/t price cap for power generators.

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