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Jakarta Post

Energy minister ensures no more delays in coal shipment

Energy and Mineral Resources Minister Darwin Zahedy Saleh gave assurances that there should no longer be any “disturbances” affecting coal exports as licensing problems that had caused shipping delays in recent weeks had been settled

Rangga D. Fadillah (The Jakarta Post)
Jakarta
Mon, February 7, 2011 Published on Feb. 7, 2011 Published on 2011-02-07T10:36:52+07:00

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nergy and Mineral Resources Minister Darwin Zahedy Saleh gave assurances that there should no longer be any “disturbances” affecting coal exports as licensing problems that had caused shipping delays in recent weeks had been settled.

“I’ve signed off on those business permits. The process took a bit longer because we had to be careful to avoid problems in the future,” he said after a meeting with Transportation Minister Freddy Numberi and the National Energy Council in Jakarta on Friday.

He added that his ministry had to review several prevailing regulations on coal trading before approving the permits to ensure that the country’s national interests were protected. He claimed that the coal sector was relatively “young but strategic”, so required more careful policy making.

Shipments of nearly 4 million tons of coal for overseas buyers have been delayed due to the late issuance of permits from the ministry. The ministry’s new regulation states that a coal trader should apply for transportation and sales permits to enable them to export coal. The Indonesian Coal Mining Association (APBI) said most companies it represented had applied for the required permits since November last year.

APBI chairman Bob Kamandanu claimed that due to the late approval, the shipment of 3.5 million tons of coal for export had been delayed. The association estimates that the problem caused financial losses of between US$20,000 and $25,000 per day.

To ensure that the exporting of coal would not negatively affect the country’s national interests, Darwin said he had instructed mineral and coal director general Bambang Setiawan to closely monitor coal shipments.

APBI executive director Supriatna Suhala reported Friday that his association had not received any official announcement from the ministry about the permit approvals. However, he expressed his gratitude to the government for approving the permit applications, saying coal companies would not be able to deal with longer delays.

Indonesia’s coal businesses had drawn the world’s attention in the last few years. Currently, the country is the world’s largest exporter of coal.

This year, Southeast Asia’s largest economy is estimated to produce 340 million tons of coal, a 23 percent increase from the 275 million tons produced in 2010. The APBI forecast that 20 percent — around 70 million tons — will be allocated to fulfill domestic market demand, while the remaining 80 percent will be exported.

The association has also repeatedly called on the government to develop infrastructure to connect coal mines and ports. The APBI claims such policy would help miners improve operational efficiency and ensure timely delivery.

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