Indonesia: Export ban for raw materials - update

Port news

Published: 13 January 2014

Members are referred to the Association's previous advices of 31 December 2013 and 9 January 2014.

The Association has now learned that the notified ban on the export of raw materials, principally dry bulk mineral ores, has come into effect as of Sunday 12 January 2014.

The information available indicates that at present a limited implementation is underway with both nickel ore and bauxite ore being target for export ban enforcement.

Coal, tin and copper exports appear to continue to be permitted.

The Government of Indonesia is reported to be formulating further clarification on this policy.

Until there is firm and official confirmation from the Indonesian Government to explain the full ambit of the implementation of the 2009 Mining Law, the situation is likely to remain unsettled.

In the meantime there have been repeat reports over the last few days of some vessels finding it difficult to obtain the necessary sailing clearance after having laden mineral ore cargoes in Indonesia. The Association is monitoring the situation, but it has not yet proven possible to confirm whether these incidents are linked to the implementation of the mineral export ban, or whether there are other reasons involved.

The Association's advice is that Members should carefully check - prior to concluding any new fixture - that the intended cargo can be legally exported from Indonesia.

In respect of any existing time / period charter arrangements, Owners should ask Charterers to confirm that any dry bulk cargo ordered to be lifted from Indonesia is legal for export, before proceeding to load port. It would prove very difficult to resolve a situation if a vessel gets stuck half laden with a cargo that is not permitted for export.

If Members experience any issue with loading of their cargo, or obtaining the usual sailing clearance upon completion of loading, they should contact the Association immediately.

Masters should also feel free to contact the local Correspondent directly in case of any problems.

For further information please contact the Association.

The Association is grateful to Dughall Aitken of SPICA and Capt. Mohammed of SPICA Indonesia for contributing to this advisory.