Indonesia’s Trading Permit Delays Disrupt Exports of Resources

The Indonesian government’s delay in issuing trading permits has disrupted commodity exports from the country including coal, officials said. 

The new Indonesian mining law requires traders to convert their old permits to the mining business license issued by the Energy and Mineral Resources Ministry before they are allowed to ship products overseas, said Djunaedi, head of mining exports at the Trade Ministry. 

“The energy ministry halted the process for giving out the license while waiting for the ministerial decree to be issued,” Djunaedi, who uses one name, said in an interview in Jakarta today. The requirement is applied to exports of other mining products such as bauxite and gold, he said, adding that producers are still allowed to export. 

The mining law was imposed in 2009 with the aim of controlling minerals and coal mining, as well as limit environmental damage in Southeast Asia’s biggest economy. Witoro Soelarno, secretary to the director general of coal and minerals, didn’t answer two calls to his mobile phone seeking comment. 

Hundreds of coal traders were forced to halt shipments pending the approval of licenses, said Bob Kamandanu, head of the Indonesian Coal Mining Association. 

“The energy minister has ordered the director general of coal to process all applications,” Kamandanu said by phone from Jakarta. Exports will return to normal when traders receive licenses, he said. 

Refined tin exports are exempted from the new regulation as only registered producers and exporters at the trade ministry are allowed to ship the metal, Djunaedi said. Indonesia, the world’s largest shipper of the metal used for soldering and packaging, has 34 registered exporters. Source: Bloomberg