Coal miners lament lengthier bureaucracy for export

Coal miners in the country complained that a new Minister of Trade regulation requiring them to obtain registered exporter status from the ministry to be allowed to make export would lengthen the bureaucratic line and create extra cost, creating new burden for miners already troubled with the current sluggish coal market.

The new Minister of Trade Regulation No 39/2014 on the procedure for the export of coal and coal products is set to become effective September 1. The regulation stipulates that coal miners must first obtain recommendation letter from the Ministry of Energy and Mineral Resources (MEMR) before applying for the registered exporter status with the Ministry of Trade.

Director General of Mineral and Coal at MEMR R. Sukhyar said that his office would issue a new decree this week, detailing the criteria and procedure for miners and traders to be able to obtain the recommendation letter.

Kontan reported on Friday that to be able to obtain the recommendation letter miners must be able to provide the necessary administrative documents including ?clean and clear? permits, tax payment, and production and export plan.

Bambang Tjahjono Setiabudi, coal chief at the ministry, said that for the coal miners holding the IUP mining permits, they will also be required to obtain recommendation letter from local administrations where they operate.

Executive Director of the Indonesian Coal Mining Association (ICMA) Supriatna Suhala said that the requirement to obtain recommendation from local governments will further extend the bureaucratic line, and create new uncertainty as well as cost.

?This is risky, takes time, and can potentially create extra fee,? he told Kontan.

Starting September of this year, coal miners in the country must obtain registered exporter status from the Ministry of Trade to be allowed to export the commodity. (*)