Coal Exports Banned, Indo Tambangraya (ITMG) Declares Force Majeure

The listed coal mining company, PTIndo Tambangraya MegahTbk (ITMG) declared a state offorce majeure.This was done after the government issued a ban on coal exports to foreign countries.

“The company has communicated this policy to all affected ITM Group business partners,” ITMG director Yulius Gozali said in an emailed statement.

This statement was made by ITMG because the company was forced to cancel a number of international coal sales contracts.Thus, it is hoped that there will be no obligation to pay compensation to other parties due to default.

Previously, President Joko Widodo (Jokowi) firmly prohibited the export of coal mining materials abroad.Jokowi said this policy was absolute and should not be violated by all mining companies in Indonesia.” said Jokowi in a live broadcast on the Presidential Secretariat’s YouTube Channel, Monday (3/1/2022).

Facing the possibility of a shortage of coal causing a reduction in the supply of power plants owned by PT Perusahaan Listrik Negara (Persero) or PLN, Jokowi ordered the Ministry of Energy and Mineral Resources, the Ministry of SOEs, and PLN to find a solution.

“Requires state-owned companies, private companies and their subsidiaries engaged in mining, plantations and other natural resource management to fulfill domestic requirements first before exporting,” he said.

Jokowi emphasized the government’s policy of banning coal exports within this month.According to him, the fulfillment of power plants is a top priority to serve the community in general.

“The priority of meeting needs is for PLN and domestic needs,” said Jokowi.

 

Source: https://www.idxchannel.com/market-news/ekspor-batu-bara-dilarang-indo-tambangraya-itmg-nyatakan-force-majeure