Does National Insurance Requirement Mean Rough Seas For Coal Shipments?

A recently published surveyor report (laporan surveryor) on Indonesian coal exports noted that as of March 2019, of 1,095 coal shipments in 2019 only 9% were insured under a national insurance company. This number is alarming for both the Government and coal exporters in Indonesia, given that just two years ago the Ministry of Trade issued MOT Regulation No. 82 of 2017 regarding Provisions for the Utilization of National Maritime Transportation and Insurance for the Export and Import of Certain Goods (Reg. 82). This regulation has been amended several times since it was issued, most recently by MOT Regulation No. 80 of 2018 (Reg. 82 as amended).

The regulation was issued in an effort to create more opportunities for national shipping companies and national insurance companies that engage in import and export activities. Initially, Reg. 82 gave exporters and importers the choice of using national or foreign shipping and insurance companies. However, a more restrictive