Because of its fear of domestic shortages, Indonesia has banned the export of thermal coal during this January.

The Indonesian Ministry of Energy issued a statement confirming the ban on coal exports in January, because of fears of declining supplies to local power plants, local media reported.

Indonesia is the world's largest exporter of thermal coal, exporting about 400 million tons in 2020, and its largest customers are China, India, Japan and South Korea.

Indonesia has a so-called domestic market commitment policy (DMO) where coal miners must provide 25% of the annual production of the State facility at a maximum price of $70 per tonne, which is significantly lower than current market prices.

For his part, Ahmed Zahdi Doi Kusuma, an industry analyst at Manderi Bank, confirmed that the ban will push up global coal prices in the coming weeks as stocks fall, adding that Indonesia's customers may be heading to Russia, Australia or Mongolia.

He said: "In the midst of this global uncertainty, the market often looks for safer partners."

Indonesia reportedly suspended coal exports in August 2021, from 34 coal mining companies, and said it failed to meet domestic market commitments between January and July last year.

Indonesia is among the top 10 exporters of greenhouse gases, with coal accounting for about 60% of its energy sources.