The electricity supply to 10 million State Electricity Enterprise (PLN) customers, both the general public and industry in Java, Madura, and Bali, and other areas are under threat.
Director-General of Mineral and Coal at the Energy and Mineral Resources Ministry Ridwan Djamaluddin said that this was due to the low realization of the domestic market obligation (DMO) of coal entrepreneurs.
He added that the lack of extraction caused PLN’s power plants to experience a coal supply deficit at the end of last year. According to him, the safe supply of coal at the PLTU PLN is more than 20 days of operation.
“From the 5.1 million metric tons (MT) assigned by the government, until 1st January 2022, only 35,000 MT or less than one percent was fulfilled. This amount cannot meet the needs of each existing PLTU (steam electric power station).
If steps are not taken immediately, there will be widespread blackouts,” said Djamaluddin as quoted from the Energy and Mineral Resources Ministry website on Saturday 1st January 2022.
To overcome this problem, the government has decided to prohibit holders of mining business permits (IUP) or special mining business permits (IUPK) from exporting coal. The ban will be in effect between 1-31st January.
“Why are all of them banned from exporting?
They are forced and this is temporary. If the export ban is not implemented, nearly 20 steam power plants (PLTU) with a power of around 10,850 megawatts (MW) will be extinguished. This has the potential to disrupt the stability of the national economy. The generators must be fulfilled and when it will return to normal, they can be exported. We will evaluate it after 5th January,” he said.
The government, continued Djamaluddin, has reminded coal entrepreneurs several times to continue to fulfil their commitments in supplying black gold to PLN.