Indonesia exports almost three-quarters of its coal production, with the primary customers being Asia’s economic powerhouses China, Japan, South Korea, and India.
However, on January 1, it barred coal exports, citing the need to avert blackouts caused by manufacturers failing to set aside 25% of production for the local market as required.
This increased worldwide coal prices when the northern hemisphere’s winter energy demand peaked.
The “unexpected export ban has a significant effect on Japan’s economic activity and everyday life,” Kanasugi Kenji said in a letter to Indonesia’s Energy and Mineral Resources Minister Arifin Tasrif recently, which was verified by the embassy yesterday.
Japan buys around two million tonnes of coal from Indonesia each month, the letter said, noting that the quality of coal bought by Japanese firms is superior to that used by Indonesia’s power plants. As a result, Japan was not a concern in Indonesia’s coal shortages, he said.
“As a result, I would like to seek the immediate lifting of the moratorium on coal exports to Japan,” the letter stated.
Japan has few other options, the letter said, requesting a swift end to the embargo “in order to sustain and maintain the friendly economic relationship” between the two nations.
The Indonesian government had said that it will review the ban, but a scheduled meeting with coal industry representatives didn’t happen, and no explanation was provided for the delay.
Indonesia compels coal miners to reserve 25% of production for local use, but regulates the price at which it purchases the fuel at US$70 (RM293) per metric ton – a significant discount to world pricing. According to the state power monopoly and media sources, between 7.5 million and 13.9 million tonnes of coal have been diverted to domestic needs since the ban.
On September 29, 2024, Earth will experience an amazing astronomical occurrence as a new "mini-moon" visits our planet momentarily for…
The choice of Singapore to apply flexible work schedules (FWA) represents a major change in its work culture to fit…
Still one of the most disastrous natural disasters striking numerous countries all around is flooding. Often driven by combining topographical,…
As Vietnam gets ready to install ten new underwater cables by 2030, the United States is pushing Vietnam to rethink…
Recently unearthed information on North Korea's nuclear bomb manufacturing has heightened world worries over Supreme Leader Kim Jong Un's possible…
Prime Minister Fumio Kishida formally said that Japan will start negotiations for an economic partnership deal with the United Arab…
This website uses cookies.
Read More