Coal is prepared for shipment at a port in Indonesia. — Photo thejakartapost.com

Indonesia’s PT. Intra Asia Corpora on Wednesday signed a memorandum of understanding (MoU) with Việt Nam’s Hong Phat Coal and Resources Company to build a coal port in southern Viet Nam.

“The port will especially be used for cargo and logistics that will serve exports and imports between Indonesia and Viet Nam, particularly coal,” Intra Asia Indonesia commissioner Lutfi Ismail said on thejakartapost.com.

The port, worth US$1 billion, is designed to have a capacity of 15-20 million tonnes of coal per year and will help cut logistics costs for importing coal from Indonesia. Hence, it will facilitate the sustainable development of coal exports from Indonesia to Việt Nam and supply fuel to coal power plants in Viet Nam.

Indonesia’s Central Statistics Agency recorded that trade between Indonesia and Việt Nam reached $6.3 billion last year, while Indonesia suffered a $182.9 million deficit.

This year, Indonesia is targeting to export 4.5 million tonnes of coal to Viet Nam, Lutfi added. — VNS