Indonesia Warns Coal Supply Crunch Not Over As China Prices Rally

But the decision endangers Asia's economic powerhouses China, India, Japan, and South Korea, which together received 73% of Indonesian coal exports in 2021, shiptracking data from Kpler showed.

Indonesian authorities are set to reexamine the export ban on Wednesday.

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The logistics of re-routing coal cargoes to PLN's power stations will be challenging because it will require smaller barges rather than large carriers, said a Singapore-based coal analyst.

Pandu Sjahrir, chairman of the Indonesian Coal Miners Association, said as a "very short-term solution" the group's ten biggest members will help PLN close the supply gap.

On Tuesday, Indonesian State-Owned Enterprises (SOE) Minister Erick Thohir said in a statement the ministry is working to improve PLN's coal supply management and infrastructure.

"We at the SOE Ministry will improve the long-term supply contracts," Erick said, adding that the logistics system and infrastructure would also be upgraded to ensure domestic coal needs are met.

Analysts on Monday warned that India, which consumed over 15% of Indonesia's 2021 coal exports, might re-route shipments from other suppliers if the ban persists.

That could mean higher demand for coal from Australia, also a major supplier to Asia. Shares of Whitehaven Coal jumped as much as 9.2% on Tuesday, the most since July 16.

($1 = 6.3717 Chinese yuan renminbi)