India, Indonesia fail to agree on coal for railway barter deal

A proposed counter trade agreement between Indonesia and India has run into trouble after the two countries failed to agree on a plan tobarter coal for railway tracks, Antara reported.

India is asking for a price well below the prevailing price in international market for coal offered by Indonesia in the counter trade scheme in exchange for railway track offered by India, the sate-owned coal mining company PT Tambang Batubara Bukit Asam said.

Bukit Asam President Ismet Harmaini said India wanted a price of US$25 per ton as against a price level of US$31 in international market for the company's coal .

"We could not possibly accept the Indian offer. We , therefore, just wait for a reasonable offer," Ismet said last weekend, adding disagreement was over quality and price, Ismet said last weekend.

Indonesia and India signed counter trade agreement valued at US$350 million last year . Indonesia offered to supply India with coal and palm oil in exchange for railway tracks and machines of palm oil processing plant.(*)