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Indonesia, the globe’s leading coal exporter, will halt overseas shipments in January to safeguard its domestic energy reserves. The nation’s electricity demand is so high that a coal deficit would trigger widespread power outages, government officials warn.
« Failure to curb coal exports risks forcing the shutdown of approximately 20 power plants“, cautions an Indonesian Ministry of Energy official, emphasizing the threat of extensive blackouts.
Indonesia holds the top spot globally in coal exports, having shipped 400 million tonnes in 2020, largely to China and India.
The nation is obligated to retain 25% of its coal production for domestic use at a capped price. However, producers frequently disregard this mandate, according to authorities, thus creating a potential supply shortfall.
While the export prohibition is temporary, it’s already facing resistance from Indonesian coal producers who fear customers might switch to rival suppliers like Russia or Australia.
Coal is an extremely polluting energy source. It’s the primary contributor to global greenhouse gas emissions. Many nations, including Indonesia, pledged at the recent COP summit to phase out this energy source. However, soaring demand could compromise those commitments.
►Further Reading: Why coal slows down the G20’s climate commitments
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