This Week's Headlines (1 - 7 Jan 2022)

07 Jan 2022

 

  Indonesia bans coal exports in January on
 domestic power worries

 

  Indonesia has banned coal exports in January due to concerns that low supplies at domestic
  power plants could lead to widespread blackouts, a senior official at the energy ministry
  said on Saturday. 

 

  The Southeast Asian country is the world's biggest exporter of thermal coal, exporting around
  400 million tonnes in 2020. Its biggest customers are China, India, Japan and South Korea. 

 

  Indonesia has a so-called Domestic Market Obligation (DMO) policy whereby coal miners must
  supply 25% of annual production to state utility Perusahaan Listrik Negara (PLN) at a maximum
  price of $70 per tonne, well below current market prices. 

 

  "Why is everyone banned from exporting? It's beyond us and it's temporary. If the ban isn't enforced,
  almost 20 power plants with the power of 10,850 megawatts will be out," Ridwan Jamaludin,
  director-general of minerals and coal at the energy ministry, said in a statement. 

 

  "If strategic actions aren't taken, there could be a widespread blackout." 

 

  Ridwan said coal supplies to power plants each month were below the DMO, so by the end
  of the year "there was a coal stockpile deficit," adding that the ban will be evaluated
  after January 5. 

 

  The Indonesian Coal Mining Association (ICMA) called on the energy minister to revoke the
  export ban, saying in a statement the policy was "taken hastily without being discussed with
  business players". 

 

  The widespread export ban may disrupt monthly coal production volumes of around 38-40 million
  tonnes said ICMA chairman Pandu Sjahrir. In recent years, Indonesia has exported about
  30 million tonnes of coal in the month of January. 

 

  The association said it was also concerned about potential disputes with buyers if coal producers
  declared force majeure for not being able to deliver coal exports. 

 

  "Ships sailing to Indonesian waters will also experience conditions of uncertainty and this
  would affect Indonesia's reputation and reliability as world's coal supplier," Sjahrir said. 

 

  Higher Prices 

 

  Ahmad Zuhdi Dwi Kusuma, an industry analyst at Bank Mandiri, said the ban would push global
  coal prices higher in coming weeks as stockpiles decline, adding Indonesia's customers may
  turn to Russia, Australia or Mongolia. 

 

  "In the midst of this global uncertainty, the market often seeks the safest partners," he said. 

 

  China's coal imports hit their highest level of 2021 in November, as the world's biggest consumer
  of the dirty fuel scrambled to feed its power system as the winter heating season kicked in.
  But Beijing had also ordered miners to boost production. 

 

  Putera Satria Sambijantoro, an economist at brokerage Bahana Sekuritas, said that Indonesia's
  economic growth may have resulted in a higher electricity and coal consumption forecasts
  than earlier projections. 

 

  The PLN did not immediately respond to a request for comment. 

 

  In August 2021, Indonesia suspended coal exports from 34 coal mining companies it said failed to
  meet domestic market obligations between January and July last year. 

 

  Indonesia is among the top 10 global green house gas emitters and coal makes up around
  60% of its energy sources. 

 

  Source: Reuters 

 

 

 

  Indonesia Slaps Entry Ban on Foreigners from 14 Countries
 Amid Omicron Scare
 

 

  Indonesia starting today closes its borders to foreign nationals arriving from 14 countries with
  high risks of Omicron infections. The policy was enacted to prevent the new Covid-19 variant
  from spreading domestically. 

 

  On January 4, the Covid-19 Task Force issued Circular no.1/2022 on Health Protocols for Overseas
  Travel during the Covid-19 Pandemic. It includes a ban of entry for foreign citizens who in the
  previous two weeks have stayed in or visited countries with high numbers of community
  transmissions of the Omricon variant. 

 

  The countries are South Africa, Botswana, Norway and France. Indonesia also bans arrival from
  neighbors of those nations, which are Angola, Zambia, Zimbabwe, Malawi, Mozambique,
  Namibia, Eswatini and Lesotho. 

 

  Indonesia also slaps entry bans on foreign nationals who had been in the UK and Denmark, where
  the number of Omicron infections reached more than 10,000 cases. 

 

  Meanwhile, Indonesian nationals returning from those countries are allowed entry under strict
  protocols, including testing, quarantine, and vaccination if they had not received one.   

 

  Source: Tempo 

 

 

 

  Government revokes thousands of mining, forestry,
 plantation permits
 

 

  The government has revoked thousands of business permits in the mining, forestry, and plantation
  sectors that were deemed to not be in accordance with the original function, President Joko
  Widodo announced on Thursday. 

  
  "Mining, forestry, and state land use permits will continue to be evaluated. Permits that are not
  executed and not productive will be transferred to other parties. We will also revoke permits
  that are not in accordance with our regulations," he said at the Bogor Presidential Palace.

 
  While issuing the statement, the President was accompanied by Minister of Energy and Mineral
  Resources, Arifin Tasrif; Minister of Agrarian and Spatial Planning and head of the National
  Land Agency (BPN), Sofyan Djalil; Minister of Environment and Forestry, Siti Nurbaya
  Bakar; and Minister of Investment and head of the Investment
  Coordinating Board, Bahlil Lahadalia. 

 
  "First, we have revoked 2,078 permits of mining companies because they never submitted a work
  plan. We have given them permits but it has not been implemented yet," he explained. 


  Such practices have led to the use of natural resources being held up, impeding efforts to improve
  people's welfare, he said. 
 

  "Secondly, we have also revoked 192 forestry sector permits covering an area of 3,126,439
  hectares," he noted. 

 
  The permits were revoked for inactivity, not making a work plan, and neglect, he said.


  "Third, we have revoked the land title for industrial purposes (HGU) for 34,448 hectares of
  abandoned land. Of the land, 25,128 hectares belonged to 12 legal entities, while the remaining
  9,320 hectares were part of abandoned HGUs belonging to 24 legal entities," he informed. 


  The head of state said that revamping and controlling these business permits is an integral part
  of improving the governance of mining, forestry, and other permits. 

 

  "The government continues to make improvements by providing transparent and accountable
  business license facilities, but we will definitely revoke permits that have been misused,"
  Widodo emphasized. 


  The government will continue to improve the management of natural resources to create equity,
  transparency, and fairness to correct inequality, injustice, and natural disasters, he said. 
 

  Source: Antara