Coal is not a commodity that is subject to export duties, director general of customs and excise at the Finance Ministry, Askolani, explained at a press conference on the 2021 state budget in Jakarta on Monday.
The Energy and Mineral Resources Ministry has temporarily banned coal exports from January 1 to January 31, 2022, to ensure coal supplies for domestic power plants.
The ban applies to the holders of mining permits (IUP), special mining permits (IUPK) during production operation stage, and special mining permits (IUPK) as a continuation of contract operation, the ministry informed.
Meanwhile, Vice Minister of Energy and Mineral Resources, Suahasil Nazara, said the temporary ban on coal exports is a short-term solution to ensure coal supplies for thermal power plants in the country.
"We must find a short-term solution to ensure the reliability of the system and the supply of electrical power, while at the same, we must also find medium- and long-term solutions where coal, as an export commodity, can continue to meet domestic needs and export demand to obtain foreign exchange earnings," he said.
The policy will be implemented cautiously to meet the electrical power needs for domestic activities, which have begun to revive, he added.
Translator: Sanya Dinda S, Suharto
Editor: Rahmad Nasution
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