The Meeting of Indonesian Delegation with Ambassador of RI to Viet Nam in Hanoi

On March 25, 2019, the team of APBI made of representatives of several member companies participated in the delegation of RI ("DelRI").In this occasion, they visited Hanoi, Viet Nam to discuss the guarantee of coal supply from Indonesia to Viet Nam in particular, related to the plan for the implementation of the insurance and the national vessel (which was passed through Permendag (The Regulation of the Minister of Trade) No. 82/2017). The Indonesian delegation consists of the government side of the Ministry of Trade, which led by the Director herself, Olvi Andrianita, the Export Facility of the Directorate General of Foreign Trade. Among others, Merry Maryati as the Director of Export Industrial Products and Mining and several head of sub-sector and staff from the ministry also joined the delegation. Whereas from APBI, Hendra Sinadia the Executive Director was presented along with representatives of 3 member companies namely; Kideco Jaya Agung, Jembayan, and Mount Bayan who signed a contract to supply coal to the project of Nghi Son2 PLTU for 10 years.

As a primary agenda of this visit, the group took a visit to the Embassy of Indonesia in Hanoi and met directly with the Ambassador of RI to Viet Nam. Mr. Ambassador, H.E. Umar Hadi, who has been in the office for more than 3 years in Viet Nam conveyed the trade data of both countries that showed an increase in quite high number. Viet Nam today is the country with an economy ranked at 47 in the world with USD 240 billion and GDP per capita around USD 2.58, which indicates a potential country for the export of Indonesian coal in the medium and long term. The bilateral trades of both countries in 2018 come to a total of USD 8.45 billion which increased from USD 6.5 billion. Additionally, Indonesia recorded a surplus of USD 1.38 billion in the past year. Coal is still the top export’s commodity of Indonesia to Viet Nam with value in the year 2018 USD 789 million. It increased 94% from USD 407 in 2017. The volume of exports of coal to Viet Nam in 2017 was recorded at about 12 million tonnes and increased to 18 million tonnes in 2018.

According to H.E. Umar Hadi, Viet Nam whose economic growth in 2018 is listed above 7%, is developing a national electrical project that relies on coal (coal fired power plant). There are several coal PLTU that is currently being built today, such as Nghi Son2 project which is the cooperation of KEPCO (Korea) and Marubeni (Japan) with EVN (Viet Nam).  Viet Nam reportedly will increase the portion of coal usage in their energy mix considering the capacity of hydro power that has been the mainstay of their energy source and is projected to decrease its capacity.

Ambassador of RI to Viet Nam advised that Indonesian coal producers to consider shifting the market opportunity to Viet Nam for the medium and long term. To support this plan, the Embassy of Indonesia to Viet Nam will hold a Business Dialogue in Hanoi which is intended to occur at the end of April 2019 or early May 2019 by inviting Indonesian coal exporters, where in the forum there will be a "Business Matching" agenda for both exporters and importers.

 

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