The Indonesian Coal Mining Association APBI-ICMA has signed a memorandum of understanding with China Coal Transportation and Distribution Association to facilitate the export of USD 1.46 billion coal from Indonesia to China. APBI-ICMA stated: “The initiative from APBI aims to agree on a long-term supply policy for coal export. In addition, it is also to facilitate coal producers in Indonesia with buyers in China in terms of increasing the bilateral trade between the two countries. The principal of this cooperation in regards to the quantity of coal export’s target from Indonesia will be reviewed annually. In this cooperation, it is also necessary to establish a price index that can be negotiated regularly as a reference price for coal imports to China from Indonesia.”
According to APBI-ICMA, the cooperation period between the two companies lasts for three years.