Bangkok Post reported that Indonesia has denied that it will set a quota for coal exports as it wants to reserve the coal for future use.

The reports had prompted rising interest in the country's natural resources from energy hungry China and India.

Mr Simon Sembiring director general of the mineral, coal and geothermal energy department in the energy and mining ministry of Indonesia said that the reports were baseless and the new mining law likely to be passed by Parliament by June would in fact provide more certainty for mining companies.

He said the new law would include a plan to set up a mining watchdog that would oversee state reserves of tin, nickel, copper, bauxite, iron and coal.