RI to gradually stop export of power-grade coal

The Indonesian government will gradually stop export of mid- and low-calorific value coal suited for the power sector starting from the current year to meet the surging demand from local power plants, Thehindubusinessline.com reported.

?The 2013 regulations have it that low-and mid-calorific value coal will not be allowed to be exported from Indonesia. The coal will be used to boost the domestic power sector in the country,? Economic Counselor of Indonesian embassy in India Otto Riadi said on Thursday.

Indonesia had set up its own price standard last year, Riadi told reporters on the sidelines of an interactive session organized by Indian Chamber of Commerce. So far, Indonesia had been allowing exports of coal lesser than 5300 kcal/kg (mid calorific value). But that would stop, he said.

He said following the Indonesian government move, coal traders, who did not have any mines in that country would be affected.

Indian companies which owned mines in Indonesia would be allowed to import such power-grade coal in a limited way, he added. (*)