President Asks BUMN and Private to Prioritize Domestic Needs

"Regarding the supply of coal, I have ordered the Ministry of Energy and Mineral Resources, the Ministry of SOEs, and PLN to immediately find the best solution for the national interest.

The priority is to fulfill domestic needs for PLN and domestic industries," said President Joko Widodo when giving a statement regarding the supply of coal, liquefied natural gas (LNG), and cooking oil prices, at the Merdeka Palace, Jakarta. The President stated that there is already a domestic market obligation (DMO) mechanism that requires mining companies to meet coal needs for PLN's power plants. "This is absolute. Do not be violated for any reason. Companies that are unable to fulfill their obligations to meet domestic needs can be given sanctions if necessary, not only from not getting an export permit, but also revocation of a business license," he said. Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia, the company has held a meeting with the government since the export ban policy was issued on December 31, 2021. The point of each meeting is to overcome the shortage of coal supply, as complained by PLN and private power producers (IPP). "The government has promised a daily evaluation of the policy for the ban on coal exports. We ask the government for a structural solution. We also ask (PLN) users, in fact we have asked several times, so that they also make repairs, "said Hendra. A number of major coal importing countries hope that the policy of stopping coal exports by Indonesia will only be short-term. They took anticipatory steps so that the effects of the policy would not disturb the economy too much. The immediate effect so far has been the increase in coal prices in international commodity markets.

|•SOURCE•| Articles :KOMPAS | Image :SINDONEWS |

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