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Thursday, 21 January 10
CABOTAGE POLICY POSTPONED
 The Transportation Ministry has decided to postpone for one year the full enforcement of the cabotage principle – a maritime term for the prohibition of foreign ships carrying domestic cargo – which was originally scheduled for earlier this month, as required by a presidential instruction issued in 2005.
Transportation Minister Freddy Numberi explained Monday the postponement was allowed by the 2008 Maritime Transport Service Law, which stipulates, among other things, that the cabotage policy shall be implemented three years after the law comes into force.
The issue here is not whether the deferment is legal, but simply the sad fact that five years after the promulgation of the presidential decree, national freighters are not yet ready to fully take over the shipment of domestic seaborne cargo.
This is only more evidence of how ignorant the government has been of basic infrastructure, notably coastal shipping services, which are vital for such a vast archipelagic country as Indonesia.
It is understandable if more than 80 percent of our exports and imports are still controlled by foreign vessels, in view of the keen competition in international freight service. But letting around 40 percent of our domestic seaborne cargo remain carried by foreign-flagged ships could inflict severe damage to our economy.
Inter-island shipping provides input to the national economy both through the transport of commodities used in manufacturing and through the distribution of finished goods. Put another way, efficient and extensive coastal shipping services deepen the economic integration and linkages between all the major islands.
We therefore find it hard to understand why the government has not made concerted efforts to empower the national shipping and shipbuilding industries through well-coordinated policies involving banks, shippers (manufacturers) and other related parties.
Cabotage relaxation could benefit the economy through wider access to lower freight rates, because international bulk ships usually have much larger capacities. Moreover, many bulk ships servicing Australia’s exports of coal, iron ore, wheat, alumina and sugar to South Korea, India and Japan and even Indonesia arrive in Australia empty. Hence these freighters can marginally cost their inbound capacity at rates national freighter companies cannot compete with.
But we should look beyond the short-term benefits. Heavy dependence on foreign vessels for our domestic cargo makes our economy vulnerable to a sudden disruption of supplies, because foreign bulk vessels select their service routes primarily on the basis of optimizing cargoes and returns. If the government is really serious about improving national economic competitiveness and making the archipelago an economically integrated zone, it has no other choice but to empower the shipping and shipbuilding industries in cooperation with banks, traders and manufacturing companies.
The implementation of the cabotage principle would go a long way in making shipping firms more attractive to bank lending as it would increase the cargo volume for national freighters, which in turn would require more cargo vessels.
The development of coastal freight services has become more imperative now due to the sharp increase in the demand for inter-island shipments of coal, palm oil, petroleum-based products and various other bulk commodities.
For instance, coal shipments alone will more than double into the hundreds of millions of tons within six to 10 years as a result of the building of new coal-fired power plants with a total capacity of 10,000 megawatts in Java, while coal supplies are derived mainly from Kalimantan and Sumatra.
Source: Editorial / The Jakarta Post
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Thursday, 04 February 10
RI TO GRADUALLY STOP COAL EXPORTS
Indonesia, which over the past few years has become the world`s third largest coal exporter after Australia and China, is planning to gradually stop ...
Thursday, 04 February 10
NO AMDAL, NO COAL MINING IN KALIMANTAN: MINISTRY
To prevent further environmental damage, the government has said it would revoke the licenses of mining firms operating in Kalimantan that do not ha ...
Thursday, 04 February 10
ANTICIPATING DOMESTIC COAL DEMAND
Indonesia has an abundant amount of coal reserves, which in 2008 is estimated at 7,12 billion tones. Coal production in 2008 reached 231,18 mi ...
Wednesday, 03 February 10
CHINA'S MAIN COAL PRICES FALL AS WINTER DEMAND EASES
Weekly coal prices at China's Qinhuangdao port, a benchmark in the world's biggest producer and consumer of the fuel, fell for the first time in s ...
Wednesday, 03 February 10
NEWCASTLE COAL EXPORTS RISE 3%; SHIP QUEUE SHORTENS
Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, increased 3 percent last week while the ...
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- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Tamil Nadu electricity Board
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Pendopo Energi Batubara - Indonesia
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- CNBM International Corporation - China
- SMG Consultants - Indonesia
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Timah Investasi Mineral - Indoneisa
- Bukit Baiduri Energy - Indonesia
- New Zealand Coal & Carbon
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- Indian Energy Exchange, India
- Marubeni Corporation - India
- Sakthi Sugars Limited - India
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Tata Chemicals Ltd - India
- TeaM Sual Corporation - Philippines
- Antam Resourcindo - Indonesia
- Aboitiz Power Corporation - Philippines
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- The University of Queensland
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Iligan Light & Power Inc, Philippines
- Bharathi Cement Corporation - India
- Uttam Galva Steels Limited - India
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Indian Oil Corporation Limited
- Holcim Trading Pte Ltd - Singapore
- Vizag Seaport Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Economic Council, Georgia
- Videocon Industries ltd - India
- Planning Commission, India
- Indo Tambangraya Megah - Indonesia
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Jindal Steel & Power Ltd - India
- GMR Energy Limited - India
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- Eastern Energy - Thailand
- Mjunction Services Limited - India
- CIMB Investment Bank - Malaysia
- Kobexindo Tractors - Indoneisa
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Sarangani Energy Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- Australian Coal Association
- Straits Asia Resources Limited - Singapore
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- The Treasury - Australian Government
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Kartika Selabumi Mining - Indonesia
- Bhushan Steel Limited - India
- Chettinad Cement Corporation Ltd - India
- Attock Cement Pakistan Limited
- Karaikal Port Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Renaissance Capital - South Africa
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- Carbofer General Trading SA - India
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Gujarat Sidhee Cement - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- Star Paper Mills Limited - India
- Goldman Sachs - Singapore
- Ministry of Mines - Canada
- London Commodity Brokers - England
- SMC Global Power, Philippines
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Ambuja Cements Ltd - India
- Posco Energy - South Korea
- Anglo American - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Georgia Ports Authority, United States
- Maheswari Brothers Coal Limited - India
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Salva Resources Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Parliament of New Zealand
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- Xindia Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Electricity Generating Authority of Thailand
- ASAPP Information Group - India
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dalmia Cement Bharat India
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Thai Mozambique Logistica
- Borneo Indobara - Indonesia
- European Bulk Services B.V. - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Medco Energi Mining Internasional
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
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