RI may suspend coal export to the Philippines

Indonesian coal miners may be forced to suspend coal export to the neighboring Philippines if the shipping route is considered unsafe following a recent hijacking incident of coal barge, Kontan reported on Thursday.

The paper quoted Secretary General of the Indonesian Coal and Energy Suppliers Association (Asbindo) Ekawahyu Kasih as saying that even coal miners which have signed export contracts with buyers in the Philippines can suspend export activity under the force majeure clause in their contracts, especially if the Philippine authority declared the shipping route to be no longer safe.

?We hope the Philippine government to immediately take firm action to help ensure the safety of traders,? Ekawahyu said.

The Abu Sayyaf terrorist group reportedly hijacked a coal barge carrying 7,500 tons of coal belonging to coal miner PT Antang Gunung Meratus. The group has detained 10 crew members of the barge since March 26, and has demanded 15 million pesos, or about Rp 15 billion, in ransom for their release.

This is first hijacking incident faced by Indonesian coal miners, which have been exporting coal for tens of years to the Philippines particularly for power plants. In 2014 and 2015, Indonesian coal export to that country reached around 6 million tons. (*)