Coal Production Needs To Be Controlled

Senin, 08 April 2013 | 09:49


Government asks coal miners to keep domestic energy reserves and avoid excessive exploitation for business purposes. Edy Prasodjo, Director of Coal Business Development Ministry of Energy and Mineral Resources, said the Ministry pegged coal production this year by 391 million tons to keep national energy reserves. “Besides for fuel consumption, we must save coal reserve,” said Edy in Jakarta last weekend.

He stated the government always thinks of best solution to hold rapid increase of coal production. So far, the ministry is only able to control coal production from work plans and budgets, which is proposed by company through local government.

However, there are too many coal companies gained mining business license (IUP) from local government. This condition makes the ministry difficult to control coal output. More over, the increasing of foreign demand to support their economic growth also put the government in difficult situation.

At this time, Edy continued, coal from Kalimantan still dominates national production. “At least 90% of current coal production comes from Kalimantan. Therefore, we need to think for coal restriction.”

Meanwhile, the limitation proposed by East Kalimantan Governor, seemingly does not have significant result for coal exploitation in that region. Until now, the government limits for coal production every year through work plans and budgets.

Until February 2013, coal production reached around 66 million tons consisting of 50 tons for export and 16 million tons for domestic purposes.  “Indonesia coal production is exported majority to China, India, South Korea, Japan, Thailand, and Taiwan. In those countries, coal is used for coal power plants,” Edy uttered.

Coal Price Reference (HBA) in March 2013 reached US$90.09 per tons. The price 2% strengthened compare with February 2013 price at US$88.35 per ton.

Refer to that price, Edy believed the coal production this year will reach 391 million tons or 1.3% higher than 2012 coal production totaled 386 million tons.

Around 306 million tons of the production will be exported and 85 million tons remaining for domestic consumptions. In addition, for coal domestic market obligation (DMO) in 2013, Government has controlled the production as many as 74.3 million tons. (aph)

by Lili Sunardi, Arif Budi Winarto
source http://en.bisnis.com