Indonesia Allows 37 Coal Ships To Leave As Export Ban Eased

MINERS FACE FINES

Energy minister Arifin Tasrif in a parliamentary hearing on Thursday was asked about the DMO implementation and export ban, while a number of parliament members called for greater transparency over DMO compliance.

"The plan of easing the coal export ban is taking place and will continue to be evaluated and we will ensure that the vessels that have been allowed to export are those which have fulfilled the DMO," Arifin told parliament members.

The investment ministry said in its statement that mining companies that had met their sales contract with PLN and 100% of their DMO requirements for 2021 would be allowed to begin exporting.

Without naming the companies, Arifin said there were 47 miners which had surpassed their DMO requirement and 32 miners which had fulfilled between 75% to 100% of their domestic responsibilities.

Miners that had not fulfilled their PLN contracts and DMO would face fines, he added.

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Citi in a research note on Jan. 5 estimated around 490 out of 631 coal miners in the country had not yet fulfilled their DMO obligation. These 490 coal miners represent about 35%-40% of Indonesia's total production, it said.

Indonesia's two largest coal groups, PT Bumi Resources and Adaro Energy, as well as state coal miner Bukit Asam, were among companies who said in stock exchange filings they have met DMO requirements.

Bumi Resources director Dileep Srivastava said on Thursday the company was awaiting formal confirmation from the government but said an easing would be a positive development.

An Adaro spokesperson said its ships were yet to leave port as of Thursday morning.