Indonesia's new coal pricing policy hits flak from Chinese importers

Indonesia's attempt to strengthen price control over its thermal coal exports by introducing a new pricing benchmark is encountering resistance in its largest market, China, raising the risk of a decline in export volumes.

"Chinese traders are not using the new pricing system at all," an industry watcher in North China's Taiyuan noted candidly. He was referring to the directive issued by Indonesia's Ministry of Energy and Mineral Resources (ESDM) in late February that from March 1, the country's coal exporters must use the