ICMA tells members to suspend export to Philippines

The Indonesian Coal Mining Association (ICMA) has instructed all of its members to suspend coal export to the Philippines following recent attacks on coal barges by the Abu Sayyaf rebel group, Kontan reported on Friday.

The move by ICMA also comes after the Trisakti Banjarmasin Port Authority in South Kalimantan banned vessels from travelling to the Philippines waters.

The paper quoted ICMA Deputy Director Hendra Sinadia as saying that the suspension of export to the Philippines would not cause much impact as annual export volume to the Southeast Asian nation is relatively small.

According to the Ministry of Energy and Mineral Resources, coal export volume to the Philippines last year totaled 7.6 million tons, down 3.6 percent from 7.9 million tons in 2014. Export volume in the first quarter of this year reached 300,000 tons.

The paper quoted Corporate Secretary of IDX-listed coal mining firm PT Baramulti Sukessarana Tbk as confirming the suspension of export to the Philippines would cause much impact to the company as it only accounts for a small 2.5 percent of the company?s total exports. Of the company?s total coal output of 7.5 million tons last year, only 500,000 tons were exported mostly to India (87 percent). Baramulti aims to increase production to 8.6 million tons this year.

The Abu Sayyaf rebel group in the Philippines has taken hostage 14 Indonesian crewmembers of coal barges. Indonesian Minister of Transportation Ignatius Jonan said on April 19 that the government has placed a moratorium on sailing permits for ships heading to the Philippines from Indonesia. Vessels will be allowed to travel to the Philippines if they are escorted by the military. The Abu Sayyaf group is notorious for kidnappings, beheadings, bombings and extortion. The group has also been a major influence on other terror groups in Southeast Asia, including those in Indonesia.(*)