Indonesia holds talks with industry on coal distribution problems, export ban

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Indonesia is yet to reach a decision on lifting its coal export ban as authorities discussed overcoming logistic issues that have slowed efforts to distribute coal to domestic power plants, a mining group executive said on Sunday.

Indonesia's Coordinating Ministry of Maritime and Investment Affairs met with miners and other related industry again on Sunday, but has not made any decision yet regarding resuming exports, said Hendra Sinadia, executive director of Indonesia Coal Miners Association.

"One of the issues discussed was the limited availability of vessels to transport the coal to power plants," he said. Senior minister Luhut Pandjaitan has said that the coal supply emergency at local power plants is over, but the government still needed to continue discuss policies in this area.Last week Japan's embassy in Jakarta asked Indonesia's energy ministry to exclude high-calorific coal from the export ban as they are not used by local power plants and forpermission for five vessels already loaded with coal to depart for Japan.

South Korean Trade Minister Yeo Han-koo on Friday held a video call with his Indonesian counterpart to convey "concerns about Indonesia's coal export ban and strongly requested the Indonesian government's cooperation for a prompt resumption of coal shipment", South Korea's Yonhap news agency reported.

Japan and South Korea are among the top destinations for Indonesian coal and together with China and India, they accounted for 73% of its exports in 2021, ship tracking data from Kpler showed.Reporting by Fransiska Nangoy Editing by Raissa KasolowskySubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

 

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