According to the Ministry of Energy and Minerals, the temporary ban on exports is to ensure the supply of raw coal for Indonesia's coal power plants, to prevent the risk of electricity shortages for production and daily life in this country, and to force businesses to Coal production and trading enterprises must fulfill the obligation to supply 25% of the total amount of exported coal to the domestic market. According to the Ministry's data, as of January 1, 2021, out of a total of 5.1 million tons of coal, coal enterprises are obliged to supply to the domestic market according to the Government's regulations, only 35,000 tons of coal are supplied by these coal enterprises. This, will cause the risk of serious power shortage, on a large scale with nearly 20 power plants with a total capacity of 10,850 MW that will have to be shut down due to lack of raw materials.

The Indonesian government said that when the domestic coal supply is fully met, coal producers will be able to resume export business.

Before Indonesia temporarily banned coal exports in January 2022, Vietnam's coal importers need to urgently contact Indonesian coal exporters (partners) to find solutions for orders. delivery in January 2022 (if any), and at the same time it is necessary to closely monitor updates on policies, management and administration related to coal products at the website of the Ministry of Energy and Minerals of Indonesia- www.esdm.go.id (or through the Vietnam Trade Office in Indonesia). However, it is likely that the Indonesian Government will soon have to consider and adjust this decision due to pressure from the Indonesian coal production and trading business community.

The Government's announcement of temporary suspension of coal export ban was completely unexpected for the Indonesian coal production and export business community. The Association of Indonesian Coal Business and Production Enterprises said that this was a hasty and unexpected decision without any consultation with the Indonesian coal business community and requested the Ministry of Energy and Minerals. Indonesian producer withdrew this decision to ban coal exports. The Indonesian Chamber of Commerce and Industry also expressed the view that the Indonesian Government's decision is too hasty and biased and needs to be coordinated with the business community. economy of the country, any policy of the Government has an impact on the business community and the economy. Therefore, the policy of banning coal exports needs to be discussed with the business community.

According to data from the Indonesian Ministry of Energy and Mineral Resources, as of December 17, 2021, Indonesia's total coal production reached 581.17 million tons, reaching 92.99% of the mining plan target set for the year. 2021 is 625 million tons. Indonesia's coal production as of December 17, 2021 has surpassed the total production for the whole year of 2020 (565.69 million tons). The country's exported coal output as of December 17, 2021 reached 282.69 million tons. Coal output supplied to the domestic market is 188.38 million tons. Coal production not yet marketed (export and domestic) is 110.1 million tons.

Source: Vietnam Trade Office in Indonesia