Indonesia to postpone coal, CPO insurance rules by six months -Industry Assoc
Indonesia’s trade ministry has decided to postpone for six months the application of rules mandating that coal and crude palm oil export shipments use Indonesian insurers, the country’s leading coal industry association said.
It would be the second time that the application of the rules, due to come into effect on Aug. 1 and intended to support Indonesia’s shipping industry, has been postponed.
The decision comes amid industry concerns of disruptions to shipments, Indonesian Coal Mining Association (ICMA) executive director Hendra Sinadia told Reuters on Thursday.
“Everbody is very anxious,” Sinadia said, referring to coal buyers and exporters.
The government has not given guidance on how coal sellers can impose Indonesian rules on shipments sold on a free-on-board (FOB) basis, which currently constitute the vast majority of Indonesia’s coal exports, Sinadia said.
Under FOB contracts, insurance is the responsibility of the buyer, Sinadia said.
Trade Minister Enggartiasto Lukita is expected to formally announce the decision on his return from a visit to the United States, he said.
Lukita is due to return to Jakarta on July 28.
Trade Ministry representatives did not immediately respond to questions on the matter.
Source: Reuters (Reporting by Fergus Jensen; Additional reporting by Bernadette Christina Munthe; Editing by Tom Hogue)