We see numerous references in the press and by public figures that there is some 52 million ton of illegal coal exports contributing to state losses. I have seen a few press reports of small shipments of illegal tin exports and smuggled subsidized fuel shipments being caught, but have yet to see any illegal coal shipments being reported in the main press. It is hard to imagine that with such public concerns, and such huge tonnages, that significant seizures are not reported.
The definition of illegal is also not clear. There are many coal producers that have legal arrangements to delay partial royalty payments, so I consider such coal is not “illegal”. However there may be shipments with full legal documentation, wherein the tonnage or quality reporting is manipulated by parties reporting up the administration chain. Remember that the old fiscal tax had to be paid in cash for Indonesians going on overseas trips, and each passenger received an official receipt. However none of that cash actually reached the Government bank. Note also that China has exposed some improper practices of double recording of mineral stockpiles, wherein doubt must be placed on China official coal import tonnage.
Based on such apparent gossip of illegal coal, some parties are pushing for a significant change in the structure of Indonesian coal ports, which will clearly add costs to many producers, and potentially is being supported by opportunistic port builders.
- Has anyone seen any substantial reports supporting this “gossip” of such large “illegal” coal?
- Amongst the thousands of Indonesian geologists and miners etc, can anyone comment on first or second hand information of such “illegal” coal? For more private feed back you may email me onianwollff2@gmail.com