Indonesia tightens grip on nickel and coal exports

Below is an interesting article from SXCoal, highlighting some of the challenges that the Indonesian coal industry will be facing in 2020. From requiring coal exports to use Indonesian owned vessels, to requiring coal miners to sell 25% of their annual production domestically.

By Alex Guo | SX Coal

Indonesia started 2020 with two important policies in the mining sector: the ban on nickel ore exports and the requirement that coal companies export coal using local ships.

As the country is a top exporter of both commodities, the policies will have a significant impact on the global market.

Energy and Mineral Resources (ESDM) Ministry regulation No. 11/2019 bans nickel ore exports starting in January while Trade Ministry regulation No. 80/2018 requires coal exports to use Indonesian-owned ships starting in May. Both regulations were designed to create more business opportunities in Indonesia, but miners have raised concerns about the policies’ impacts on global commodity prices and supplies.

Nevertheless, the Energy Ministry’s coal and mineral director Gen. Bambang Gatot Ariyono said his office would remain steadfast in enforcing regulations by “tightening industry monitoring through digital integration”.

Bambang’s office has launched several digital systems over the last quarter to tighten its oversight on the mining industry. The systems include the Sales Verification Module (MVP) and the Mineral and Coal Online Monitoring System (MOMS)…Full Story