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Indonesia secures coal ahead of export ban review.
Indonesia Secures Coal Ahead of Export Ban Review
Indonesia, the world’s largest exporter of thermal coal, has secured its coal supply ahead of a review of its export ban. The country’s government has been considering a ban on coal exports since 2014, in an effort to boost domestic consumption and reduce reliance on fossil fuels.
The ban was initially set to take effect in 2020, but was delayed until 2021 due to concerns about the impact on the country’s economy. However, the government has now announced that it will review the ban again, with a decision expected in the coming months.
In the meantime, Indonesia has been working to secure its coal supply, both for domestic consumption and for export. The country’s state-owned mining company, PT Bukit Asam, has signed contracts with several power plants to supply coal for the next few years.
In addition, Indonesia has been looking to diversify its coal exports, with a focus on markets in Asia. The country has signed agreements with several countries, including China, Japan, and South Korea, to supply coal for their power plants.
Indonesia’s efforts to secure its coal supply come at a time when demand for the fossil fuel is expected to remain strong, despite growing concerns about climate change. According to the International Energy Agency, global coal demand is expected to increase by 0.6% per year through 2025, driven by demand in Asia.
However, Indonesia’s coal industry is facing challenges, including declining prices and increasing competition from other coal-producing countries. In addition, the country’s coal reserves are located in remote areas, which can make it difficult and expensive to extract and transport the coal.
Despite these challenges, Indonesia remains committed to its coal industry, which is a major source of revenue for the country. The government has set a target of producing 550 million tonnes of coal per year by 2025, up from around 500 million tonnes currently.
In conclusion, Indonesia’s efforts to secure its coal supply ahead of a review of its export ban reflect the country’s commitment to its coal industry. While the industry faces challenges, including declining prices and increasing competition, Indonesia remains optimistic about the future of its coal exports, particularly in Asia.