Indonesian coal exporters chafe at new regulations

[JAKARTA] Indonesia's coal exports are expected to fall 15-20 per cent in October from September and could decline 5 per cent this year as firms scramble to obtain government export permits to comply with new rules that were due to come into effect on Wednesday.

The new regulations - intended to stamp out illegal mining and ensure ample coal supplies for domestic power plants - require exporters to get approval from the mining and trade ministries.

But the industry says the rules are poorly timed and could push many firms out of business with coal prices at a five-year low. Unregistered firms will not be allowed to ship coal past the deadline.