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Commodities

Indonesia to amend local coal supply rules to improve compliance

Minister says miners that do not meet 25% domestic sales not allowed to export

Indonesia's Minister of Energy and Mineral Resources Arifin Tasrif told lawmakers on Thursday that only miners that have met their local sales quota can export coal. (Screenshot from official youtube channel of the Indonesian parliament)

JAKARTA -- The Indonesian government is drawing up plans to revise its domestic coal policy in the hope of encouraging compliance from miners and reducing the likelihood of coal shortages in the future.

Arifin Tasrif, Minister of Energy and Mineral Resources, laid out the potential changes in a parliamentary hearing on Thursday. The new plan will allow state-owned utility Perusahaan Listrik Negara to buy locally mined coal at the market price rather than at the level set by the government under the domestic market obligation policy.

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