RI yet to benefit from coal export transportation

By Adianto P. Simamora

Indonesia, the world?s largest exporter of thermal coal, has not been able to benefit from coal transportation activities due to the lack of bulk carriers and the absence of regulation obliging the exporters to use Indonesia-flagged vessels, Director of Indonesia Port Corporation IV (Pelindo IV) Pasoroan Herman Harianja said.

He said that the total number of Indonesia-flagged bulk carriers currently is 38 vessels only, for both the domestics and international routes, while the country?s coal exports are amounting to over 220 million tons.

?The market share in coal export of Indonesia-flagged vessels is only 10% due to the FOB (Free On Board) term normally used in coal trading which usually means the buyer appoints the vessel,? he said, adding that ?The government needs to make a regulation to implement the Domestic Transporter Obligation where Indonesia exporters have to use Indonesia-flagged vessels at the rate of at least 30%,?.

He further said that Indonesia also needed to increase coal terminals and/or build upgrading facilities on the existing coal terminals to cope with the growth of coal production which is expected to be at the rate of 3.5 percent per year up through 2030.

Editing by David Mustakim