Jakarta, CNBC Indonesia – Coal prices soared during trading this week. Indonesia’s policy is still one of the boosters for the price of the black stone.
According to Refinitiv data, the price of coal on the ICE Newcastle (Australia) market closed at US$ 177/ton on Friday (7/1/2022), soaring 16.64% in a week. This is partly thanks to a high spike on Thursday (6/1), when coal prices ‘floated’ 11.35% in just one day.
Last weekend, the Indonesian government announced a policy that shook the world. The government decided to stop coal exports for a month. This step had to be taken because the supply of coal to power plants was running low.
The problem is, Indonesia is the world’s largest coal exporter. China, India, Japan, and various countries depend on the supply of coal from the country.
Japan, which imports about 2 million tons of Indonesian coal per month, sent a letter asking the Indonesian government to allow exports of high-calorie coal to the Land of the Rising Sun. The reason is that high-calorie coal is not used in Indonesia’s power plants. Five coal transport ships that were originally headed to Japan are still stuck at the port.
Meanwhile, the Indian government whispered to Reuters that it had not yet made contact with Indonesia. Because India’s coal supply is adequate, imports have been carried out long ago.
“We continue to monitor closely. But for now our position is quite safe,” said a Bollywood government official.
Without supplies from Indonesia, the availability of coal in the international market is threatened. This dwindling supply makes prices soar.
Export Faucet Will Reopen Next Week?
Meanwhile, the Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed, there is a possibility that the coal export faucet could be opened next week.
According to him, the opening of the export faucet next week can be done if the stock of coal for domestic purposes, especially for the PT PLN (Persero) power plant can be met.
“Yes, if our stock and reserves have met the needs of PLN and domestically, we can export,” he said when asked by reporters at his office, Friday (07/01/2022).
“If it is fulfilled in the following weeks, there is already certainty that 5-6 million can be exported,” he continued.
CNBC INDONESIA RESEARCH TEAM
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