The Simulacrum Coal Dilemma

Now is the time for the government to thoroughly evaluate its energy strategy and policies, including the implementation of existing regulations and taking into account the interests of all parties in a fair.

KOMPAS/AGUS SUSANTO

The barge Pulau Jaya 336-1 loaded with coal docked at Marunda Port, Cilincing, North Jakarta, Sunday (12/19/2021). The government has issued a mandatory fulfillment of the domestic coal market (DMO) which reaches 25 percent to meet the electricity, fertilizer and cement sector industries.

The interests of the public should be taken into consideration as regards the ban on coal exports from 1 to 31 Jan. 2022.

The Energy and Mineral Resources Ministry’s minerals and coal director general, Ridwan Jamaludin, announced the government’s decision on Saturday (1/1/2022), saying that the decision had been made on the grounds of meeting the demands of coal-fired power plants (PLTUs) managed by state electricity firm PT PLN as well as independent power producers, or IPPs (Kompas, 3/1/2022). Earlier, the PLN president director sent a letter to the Energy and Mineral Resources Ministry on 31 Dec. 2021 about the coal crisis and the commodity’s extremely limited supply. The situation would disrupt the operation of PLTUs, which would then impact the national electricity grid (Kontan.id, 1/1/2022).