The Indonesian government lifted its ban on coal exports late on Thursday.
As expected, permission to resume selling coal abroad was granted only to mining companies that met their domestic market obligations by selling 25% of their 2021 production volume to state utility Perusahaan Listrik Negara (PLN).
Coal industry sources told TradeWinds that the first phase of the ban's lifting covered most of the large producers that dominate the export trade, although traders that source their coal from a variety of smaller mines that did not meet their domestic quotas last year are still prohibited from exporting.
A joint circular issued by three government ministries seen by TradeWinds indicated that 37 foreign-flag bulk carriers that were loaded with coal from approved companies are allowed to depart Indonesian territorial waters.
A further 18 bulkers were listed as loading coal supplied by approved producers Adaro Indonesia, Borneo Indobara, Kideco Jaya Agung, Multi Harapan Utama, Marunda Grahamineral, Ganda Alam Makmur and Bina Insan Sukses Mandiri.
However, 16 bulkers that either had loaded or are loading coal supplied by companies that did not meet their domestic market obligations will not be allowed to depart, at least not for now.
The export ban, which was implemented with almost no notice on 1 January, is believed by brokers and shipping agencies to have tied up about 200 panamaxes and supramaxes that were either loaded, loading, or awaiting loading on 1 January, or that had arrived at the loading port on the days following the ban.
Other bulkers are reported to have diverted to Australia or South Africa as coal buyers sought urgently needed supplies elsewhere.
While Indonesian politicians are crediting the ban for resolving PLN's acute coal shortage, it has led to a shakeup at the utility, in which several top executives were replaced.
The government has also cancelled the operating licences of more than 2,000 small producers that had neglected their domestic quotas and were found to have breached other regulations.
Indonesia exports about 400m tonnes of coal per year, and with half of January exports removed from the market, many shipping sources involved in the domestic coal sector expect it will take weeks, if not months, for the backlog of exports and waiting vessels to clear.
They expect a high number of maritime disputes between owners, charterers and shippers over demurrage costs and cancelled fixtures due to force majeure having been declared by many mines and shippers.
