Foreign vessel prohibited to transport coal to Tanjung Jati B

Ministry of Transportation has cancelled temporary license given to Singapore-flagged handymax vessel MV Jawa Power to transport coal from Samarinda to Tanjung Jati 2x660-MW power plant in Jepara, Central Java, Bisnis Indonesia reported on Wednesday.

The report said the ministry decided to cancel the license because local shipping firm PT.Arpeni Ocean Line has already had similar vessel, which could be used to take over coal transportation work from MV Jawa Power..

Under the cabotage principles, foreign flagged vessels are prohibited to transport coal within Indonesia.

According to the daily, Jawa Power is contracted for 3 months starting December 20, 2006 to transport coal to Tanjung Jati B..

Ministry of Transportation only gives temporary licenses to foreign vessels if local vessels are unavailable. (*)