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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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- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- McConnell Dowell - Australia
- Coal and Oil Company - UAE
- Bhatia International Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Straits Asia Resources Limited - Singapore
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- White Energy Company Limited
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Power Finance Corporation Ltd., India
- Wilmar Investment Holdings
- Sindya Power Generating Company Private Ltd
- Bulk Trading Sa - Switzerland
- Samtan Co., Ltd - South Korea
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement PLC, Thailand
- Rashtriya Ispat Nigam Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- Meenaskhi Energy Private Limited - India
- Thiess Contractors Indonesia
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- Petrochimia International Co. Ltd.- Taiwan
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Eastern Coal Council - USA
- Attock Cement Pakistan Limited
- Pendopo Energi Batubara - Indonesia
- Eastern Energy - Thailand
- Heidelberg Cement - Germany
- Savvy Resources Ltd - HongKong
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- Sree Jayajothi Cements Limited - India
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- Renaissance Capital - South Africa
- Cement Manufacturers Association - India
- GMR Energy Limited - India
- Madhucon Powers Ltd - India
- Romanian Commodities Exchange
- Kepco SPC Power Corporation, Philippines
- Ministry of Mines - Canada
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- The State Trading Corporation of India Ltd
- Wood Mackenzie - Singapore
- Mintek Dendrill Indonesia
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- GVK Power & Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- Medco Energi Mining Internasional
- Price Waterhouse Coopers - Russia
- Energy Link Ltd, New Zealand
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- TNB Fuel Sdn Bhd - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- Binh Thuan Hamico - Vietnam
- Tata Chemicals Ltd - India
- Bukit Baiduri Energy - Indonesia
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Meralco Power Generation, Philippines
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- Aboitiz Power Corporation - Philippines
- Uttam Galva Steels Limited - India
- PNOC Exploration Corporation - Philippines
- Tamil Nadu electricity Board
- Edison Trading Spa - Italy
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- Bharathi Cement Corporation - India
- London Commodity Brokers - England
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Electricity Generating Authority of Thailand
- Intertek Mineral Services - Indonesia
- Sakthi Sugars Limited - India
- Globalindo Alam Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- PetroVietnam Power Coal Import and Supply Company
- Carbofer General Trading SA - India
- Videocon Industries ltd - India
- The University of Queensland
- Global Business Power Corporation, Philippines
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Rio Tinto Coal - Australia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Kapuas Tunggal Persada - Indonesia
- Petron Corporation, Philippines
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Iligan Light & Power Inc, Philippines
- Bhoruka Overseas - Indonesia
- Minerals Council of Australia
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- ICICI Bank Limited - India
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Mjunction Services Limited - India
- Vedanta Resources Plc - India
- Aditya Birla Group - India
- Agrawal Coal Company - India
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