Jakarta, CNBC Indonesia – The Indonesian Coal Mining Association (APBI) protested the policy of the Ministry of Energy and Mineral Resources (ESDM) which prohibits coal exports during January 2022. They asked for this policy to be immediately revoked.
The ESDM Ministry carried out a policy to ban coal exports during January in order to secure the supply of coal to the steam power plant (PLTU) owned by PT PLN (Persero). The coal supply deficit is said to have resulted in 10 million PLN customers experiencing power outages.
Chairman of APBI, Pandu Sjahrir said that the ban on coal exports during January 2022 had a significant impact on the coal mining industry in general and on state revenue in terms of foreign exchange.
APBI calculates the impact of this policy is that the volume of national coal production will be disrupted by 38-40 million MT per month.
“The government will lose foreign exchange from coal exports of approximately US$3 billion per month. The government will lose tax and non-tax revenues (royals), which will also have an impact on losing local government revenues,” said Pandu Sjahrir in his official statement, Saturday ( 1/1/2021).
Another impact, the cash flow of coal producers will be disrupted because they cannot sell export coal. Ships for export, almost all of them are ships operated or owned by companies of export destination countries.
“These ships will not be able to sail following the implementation of this policy of prohibiting sales abroad in which case the company will incur additional costs by the shipping company for the large demurrage (US$20,000 – US$40,000 per day per ship). ) which will burden exporting companies which will also have an impact on state revenues,” explained Pandu Sjahrir.
Pandu Sjahrir added that ships sailing to Indonesian waters will also experience conditions of uncertainty and this has resulted in Indonesia’s reputation and reliability as a world coal supplier.
Mass majeure declaration from coal producers because they cannot send export coal to buyers who have contracts so that there will be many disputes between sellers and buyers of coal.
“The general application of export bans due to non-compliance by several companies will be detrimental to companies that comply and are often asked to make up for supply shortages,” he explained.
(roy/roy)
– .
