S. Kalimantan mulls banning foreign flagged barges

South Kalimantan authorities are considering prohibiting foreign flagged coal barges from entering the Barito River and transporting coal from the province to other areas in Indonesia, local daily Banjarmasin Post reported Monday.

The provincial governor was scheduled to discuss the matter in a meeting scheduled for Monday (today), which would be attended by officials from local government agencies and representatives of coal producers like PT Adaro Indonesia and PT Arutmin. Also taking part in the meeting would be officials of PT Rig Tenders, a JSX-listed company which holds monopoly to transport Arutmin and Adaro coal, the paper quoted Sonny Partono, an official from the governor?s office. Rig Tenders hires foreign flagged barges, mostly from Singapore.

?Coal transportation for the domestic market should not be carried out by foreign flagged carriers, while such vessels are free to carry the commodity to foreign countries,? Sonny said.

Meanwhile, lawyer Lenny Wellyhani told the paper that the South Kalimantan authorities should conduct a study so as to determine whether they really had authority to prohibit foreign flagged vessels from transporting coal to overseas from the area.

She said provincial government officials could go to other coal producing provinces like East Kalimantan and South Sumatra and find out whether they also practiced such policies. (*)