Why Did Indonesia Only Set Free 18 Coal Vessels?


The Indonesian government has finally lifted the coal export ban. However, despite initially planning to allow 37 foreign vessels to go, the Energy and Mineral Resources (ESDM) Ministry has only permitted 18 fully loaded coal vessels to depart. According to a letter from the Directorate General of Mineral and Coal dated January 13, 2022, that D-Insights received, these 18 vessels get the coal from coal contracts of work (PKP2B) and production operation license (IUP-OP) holders, which had already met 100 percent or more of 2021 domestic market obligation (DMO) requirements.

The letter addressed to the Director-General of Foreign Trade, the Director-General of Customs and Excise, and the Director-General of Sea Transportation states that the export ban revocation only applies to PKP2B and IUP-OP holders that have already met the 2021 DMO by 100 percent or more. "Based on the aforementioned, we hereby inform you that the ban on overseas coal sales on 18 vessels loaded with coal from PKP2B and IUP-OP holders that have already met the 2021 DMO of 100 percent or more will be revoked," the letter which was signed by the Director-General of Mineral and Coal Ridwan Djamaluddin states.

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