Indonesia postpones palm oil insurance regulations to May

01.03.2019

Indonesia's Trade Ministry has postponed its regulations requiring coal and palm oil exporters to use local insurers to May 31, the ministry said in an official notice.

"Exporters and or buyers in export destination countries need time to adjust and comply with these policies," the notice issued on Wednesday said.

It added that some export destination countries have similar policies "specifically for procurement of government goods so that time is needed to negotiate."

This is the third postponement of the regulation. The regulation was first issued in October 2017 and was intended to come into effect in August 2018, but it was delayed to February 1 this year.

According to market sources, Indonesian coal exporters were given a one-month transition period which ended on February 28.

"There has been lots of confusion among exporters regarding the regulation and documentation," Hendra Sinadia, executive director of Indonesian Coal Mining Association, told S&P Global Platts Friday.

He added that the regulation was still in force, but the trial period will be extended to May 31.

"Some smaller insurers are charging a high premium too," a Singapore-based trader said.

The impact on thermal coal exports and prices have been limited so far.


spglobal.com

 

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