Indonesia Suspends Coal Exports To Communist China
Indonesia suspends coal exports to Communist China.
On Wednesday, Indonesia has just suspended all coal exports to Communist China until, at least, the end of January.
When coal supply to power plants are fulfilled then all return to normal, exports will resume, Indonesia’s director-general of minerals and coal Ridwan Djamaluddin said in a statement.
The widespread export ban may disrupt monthly coal production volumes of around 38-40 million tonnes. Export trends of previous years have shown that Indonesia sends out approximately 30 million tonnes of coal every January, and a significant portion of the same goes China’s way.
Beijing tried to replace Australian coal with Indonesian
Last summer, Beijing imposed a ban on all Australian coal exports, confident that Indonesia’s increased supply would suffice. When the Australian government tried to explain the sudden halt, Beijing worked to strike a three-year deal with Indonesian miners for $1.5 billion of the fuel.
Therefore, the suspension of exports by Indonesia will end up seriously hurting the Chinese economy.
In December, encouraged by the EU, the US, and #Australia, Indonesia decided to challenge Beijing on steel and aluminum.
Adaro Energy, a major Indonesian coal miner, announced plans to invest US $728 million in an aluminum smelter and a second endeavor to establish a “new energy battery factory”.
Indonesia's decision comes at a time when the Western countries are planning to cut China off new tech and capital.
A prolonged economic crisis possible, observers say
Even a month of Indonesia’s suspension of coal imports will exacerbate at first energy crisis. Then, it will escalate to the industry and construction market. It will deepen the already disastrous situation in China’s aluminum and steel industries.
The prolonged energy and economic crisis, will halt Chinese weaponry development and weaken its potential for hostile military actions.
But the suspension period will presumably last longer.