Coal Importers Observe Indonesian Government Policy Direction

JAKARTA-APBI-ICMA: April 13, 2019 reported that coal importers are still looking at developments in the obligation to use national vessels for commodity export activities from Indonesia.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that one of the country's coal importers waiting for clarity was Vietnam. According to him, Vietnam is a very potential market for coal exports from Indonesia.

"Vietnam is building a massive Steam Power Plant (PLTU) and the coal is from us. They have started to ask about this policy," Hendra said on Saturday (04/13/2019).

As is known, the Minister of Trade Regulation (Permendag) Number 82 of 2017 concerning Provisions on the Use of Sea Transportation and National Insurance for Export and Import of Certain Goods requires the use of ships and national insurance for coal and CPO exports with the aim of encouraging the national insurance and logistics industry. The regulation promulgated on October 31, 2017 will initially be carried out effectively 6 months after its publication, May 1, 2018.

Even business people, especially exporters, immediately requested that the application of the regulation be postponed or revised. Because the readiness of insurance and the availability of national vessels for export activities are considered insufficient.

Finally, the implementation of the obligation to use the national vessel was postponed until May 1, 2020. Meanwhile, for insurance, it was only delayed for 3 months and entered into force on August 1, 2018.

Even though it was postponed until August 1, 2018, the technical instructions were only published on January 16, 2019 and the implementation of the national insurance obligations could only be carried out starting February 1, 2019 and still need a trial period of 3 months.



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