Statement of President of the Republic of Indonesia on Coal Supply, Liquefied Natural Gas (LNG), and Cooking Oil Prices, the Merdeka Palace, Jakarta, January 3, 2022

Assalamu’alaikum warahmatullahi wabarakatuh,

Let me remind you that private sector, state-owned enterprises (SOEs) and their subsidiaries in the fields of plantations, mining, or other natural resources must fulfill domestic needs before exporting the commodities. [This is] as mandated by Article 33 paragraph (3) of the 1945 Indonesian Constitution, which states that land, waters and natural resources within shall be under the powers of the state and shall be used to the greatest benefit of the people.

First, regarding coal supply. I order Minister of Energy and Mineral Resources (ESDM), Minister of State-owned Enterprises (BUMN), and state-owned electricity company PT PLN to immediately come up with the best solution for the national interest. The priority is the fulfillment of coal needed by PT PLN and domestic industries.

There is a domestic market obligation (DMO) mechanism that require mining companies to meet the needs of PLN’s generators. This is a must. They [the companies] must not violate the policy for any reason. Any company that fails to fulfill their obligations to meet domestic needs may be subject to sanctions. If necessary, the Government will not issue their export permits and revoke their business licenses.

Second, regarding liquefied natural gas (LNG) supply. I also urge LNG producers, be it state-owned energy company PT Pertamina or private companies, to put domestic needs as priority. I also order Ministry of Energy and Mineral Resources and Ministry of SOEs to find a permanent solution to this issue.

Third, regarding cooking oil. Due to rising prices of crude palm oil in the export market, I order Minister of Trade to ensure stability of domestic cooking oil prices. Once again, the Government’s main priority is the needs of the people. The price of cooking oil must remain affordable. If necessary, Minister of Trade can carry out market operations so that prices remain under control.

That concludes my statement.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(RIF/EP)