Jakarta –
The ban on coal exports implemented by the Indonesian government will have an impact on China. This is because China is one of the largest coal importers from Indonesia.
However, the impact of the ban on coal exports from January 1 to 31, 2022 is estimated to be relatively small.
Quoted from Bloomberg, this ban is predicted to have little impact on China. This is because China has previously increased domestic coal production to prevent supply shortages last year.
The amount of production in China has been able to meet the needs of power plants. Currently the demand for electricity is very large due to winter and many people use heaters or heaters.
Morgan Stanley analyst Sara Chan said the steps that China had taken would help the country to maintain supply conditions in the midst of an energy crisis.
“Even the ban on coal from Indonesia came into effect in January, the overall impact for this domestic power plant can still be controlled,” said China Fengkuang Coal Logistics in a note as written Sunday (9/1/2022).
The ban on coal exports is still reaping the pros and cons. Because, there are still many producers who want to sell abroad because the current price is good.
However, the Ministry of Energy and Mineral Resources said that this step was taken in order to secure the national energy supply whose stock is running low.
Previously, China also partnered with Australia to fulfill this coal. However, the existence of geopolitical conflicts has made Indonesia a source of coal for China. From the Chinese Customs data, since the end of November 2021, coal imports from Indonesia to China have been more than 60%.
In addition, China is also the largest fuel miner in the world. With the lack of coal supply, this will potentially make the electricity supply limited. Last October, the government immediately responded with a policy to encourage domestic production.
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