The Palm Scribe

Regulation on national insurance and sea transport may hinder exports

Bisnis Indonesia, 22 January 2019

The government’s decision to oblige exporters to use national sea transport and insurance companies may hinder crude palm oil (CPO) and coal exports. The policy, included in a technical instruction for Trade Ministerial Regulation No.82/2017 issued by the Trade Ministry Foreign Trade Directorate General on January 16, requires CPO and coal exporters to use national insurance starting from 1 February. Indonesian Palm Oil Association (Gapki) Trade and Sustainability Deputy Chair Togar Sitanggang said on Monday (January 21) the policy forced CPO importers to repeat the free on board process, as they had to find proper national insurance.

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