Indonesia reportedly has decided to delay a regulation requiring companies to use national vessels for exporting coal for 2 years. The decision was taken at a meeting at the Coordinating Ministry for Maritime Affairs on April 3.
The decision came as the regulation was due to be implemented this month. According to the regulation issued by the Trade Ministry last year, coal and palm oil must be shipped overseas using national carriers, unless the local firms can’t provide the vessels.
As for the requirement to use national insurance companies, the government has decided to apply a 3 month transitional period. The Trade Ministry will issue the revised regulation.
Hendra Sinadia, executive director of the Indonesian Coal Mining Association, said he has heard about the decision but has yet to receive the official decree.
With the decision, Indonesian coal companies can breathe a sigh of relief. The country still relies foreign vessels to deliver more than 80% of its coal output to overseas customers.
Preliminary data compiled by ICMA shows domestic carriers can ship 4.6 MnT a month using 139 vessels, which is a fraction of Indonesia’s monthly coal exports of between 30-35 MnT.
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