Govt may allow PLN to use foreign coal vessels

Government may allow state electricity firm PLN to temporarily use foreign-flagged vessels to transport its coal requirements to its power plants to avoid coal supply shortage, a senior government official said as quoted by Republika Daily.

Deputy Coordinating Minister for Economics Bambang Susantono said that the government considered local shipping fleet was not yet able to cater PLN?s vessel requirement and security of electricity supply was of paramount importance.

He, however, said that the government had yet issued formal decree to allow the exemption.

Under the current regulation called cabotage principle, foreign ships are barred from carrying goods from one point to another within the country. (*)