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Indonesia postpones mandatory use of local insurance for coal exports , report

Image : BorneoCoalTrading

JAKARTA (RambuEnergy.com) – The Indonesian Trade Ministry is reportedly to have postponed its regulation which requires coal exporters to use local insurancers to May 31, 2019.

“Exporters and or buyers in export destination countries need time to adjust and comply with these policies,” the Trade Ministry said in a Note as reported by S&P Global Platts Friday.

It added that some export destination countries have similar policies “specifically for procurement of government goods so that time is needed to negotiate.”

This is the third postponement of the regulation. The regulation was first issued in October 2017 and was intended to come into effect in August 2018, but it was delayed to February 1 this year.

Industry players have said coal producers and traders are not ready yet to implement the regulation. Some players maintain the existing insurance, with others opt to have double insurance policy to comply with the new regulation.

Initially, the Indonesian coal exporters were given a one-month transition period which ended on February 28.

A regulation issued in August last year requires Indonesian exporters of coal to use local insurers from Feb. 1, and also requires them to use local shipping companies from May 2020. (*)

 

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