Vietnamese importers warned of 34 suspended Indonesian coal exporters

Monday, August 16, 2021  16:05

The Trade Office of Vietnam in Indonesia has advised Vietnamese importers to not trade with 34 Indonesian mining companies whose coal exports have been suspended by the local government for failing to meet domestic market obligations.

An open-pit coal mine in Binungan, East Kalimantan, Indonesia. (Photo: thejakartapost.com)

Accordingly, Indonesia has introduced sanctions for producers that fail to meet their domestic market sales obligations, with 34 companies temporarily banned from exporting coal because of unfulfilled supply agreements with state-run power utility PT PLN between January 1 and July 31 this year.

Starting on August 7, the ban will be in effect until these companies fulfill their supply obligations.

The Trade Office of Vietnam in Indonesia has provided the Ministry of Trade and Industry with the list of the 34 firms, saying that Vietnamese coal importers should not sign new contracts with them until the ban is lifted.

Customs data shows that Vietnam’s coal imports from Indonesia slid 9.3% to 9.66 million tonnes in the first seven months of 2021.

The import value, meanwhile, surged 42.6% to exceed US$732.8 million as global coal prices were soaring on the back of sharply increasing demand from China and several North Asian countries.

VNA