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Indonesian coal export terminals under greater scrutiny

Indonesian coal export terminals under greater scrutiny
Indonesia may control the number of coal export terminals in the country claiming it losses up $493m in revenues.

According to local media reports, Edi Prasodjo, the coal director at the Energy and Mineral Resources Ministry was quoted as saying: “Coal can currently be exported from any loading point, which makes it difficult for us to control.”

“We’re discussing restricting exports in the future to certain ports or shipping points to avoid illegal deliveries,” he added.

With many smaller miners in Indonesia barging coal out of their mines upriver to mother vessels out at sea, it is estimated that there are some 56m metric tons of coal production annually that cannot be verified, resulting in potential losses to the state of as much as IDR5.5trn ($493m), according to figures cited from a study by the Indonesian Coal Mining Association.

The government is also considering if the new regulations would include private terminals, which large miners such as Bumi Resources and Adaro Energy have to ship their own coal.

Indonesia's coal production may rise to 391m tons this year, from 386m tons last year, according to the report.