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Issue: 005 Friday 27 February 2015
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COAL PRODUCTION BY THE YEAR 2019
Based on the 2015-2019 coal production plan of the Ministry of
Energy and Mineral Resources, the government of Indonesia is
targeting the country’s coal productions from year to year as
follows: 425 million tons (322 million tons for export), 429 million
tons (318 million tons for export), 434 million tons (313 million
tons for export), 434 million tons (303 million tons for export), and
442 million tons (302 million tons for export).
COAL REMAINS GOVERNMENT’S MAINSTAY
The Director for Development and Coal Mining Undertakings under
the Ministry of Energy and Mineral Resources, Bambang Tjahjono,
said that coal will remain a mainstay for the government in its
efforts to raise the State’s revenues. As targeted by the government
the non-tax revenue (PNBP) will be at Rp40.3 trillion, mostly
coming from coal commodities.
EXPORT DECLINES
Indonesian Ministry of Energy and Mineral Resources is targeting
that the domestic coal demand will rise 8 percent per year, the
export will decrease 1.5 percent and as controlled by the
government the production will rise only 1 percent. It was reported
by the press.
REQUESTED TO OPERATE SOON
Three mining companies as the holders of the permits of mining
undertakings (IUPs) and Coal Mining Authorizations (PKP2B) in
Tabalong sub district of South Kalimantan are requested to operate
immediately because they have already entered a stage of
production. It was said by the Division Head of Energy and Mineral
Resources of Tabalong, Imam Fahrullazi.
ILLEGAL EXPORT OF 60 MILLION TONS OF COAL
Based on the data from the Directorate General of Mineral and Coal,
50-60 million tons of coals per year have been exported illegally.
The coal could be exported illegally because of the difficulty of
monitoring the shipments of coal from Indonesia due to vast sea
territory of the country.
DOUBLE RAILWAYS TO OPERATE IN MARCH
PT Bukit Asam Tbk is currently working on the railway project of
double tracks from the railway station of Prabumulih to the railway
station of Tanjung Enim. The company's President Director
Wilawarma said as planned the project with investment of Rp3
trillion can be completed by March 2015.
76 PERCENT EXPORTED
Based on the data from the Directorate General of Mineral and Coal
the coal production of 425 million tons is targeted in the year 2015
and 76 percent or 322 million tons of the production will be
exported, and 24 percent or 103 million tons will be allocated to
domestic markets in the country.
TWO UNFRIENDLY POLICIES
Secretary General of the Association of Indonesian Suppliers of
Energy and Coal (Aspebindo) Ekawahyu Kasih said, two unfriendly
policies that have made coalmine operators suffocated are those
on royalties and export duties.
REMOVAL OF 25-PERCENT MARGIN
Indonesian Director General of Mineral and Coal R Sukyar said the
central government of Indonesia will provide incentives to
businesses that are eager to increase the value added of coal in the
country. It can be done by removing a 25-percent margin.
PRICE CONTINUES TO DECLINE
Since the year 2011 until now the price of coal has continued to
decline. Many mining companies have been closed down. Even this
year the price of coal will be again declining. It occurs because
China will reduce its coal consumption due to high pollution levels
in the country, said an Economist from Gadjah Mada University
(UGM) Tony Prasetiantono.
CAUSE OF FALLING PRICE
APBI-ICMA’s Executive Director Supriatna Suhala said there are a
number of factors both on national and international bases causing
the terrible conditions of coal market. Among others are the factors
of the spirit of green movement for the use of new and renewable
energy sources, the oversupply of coal due to high prices in the
years 2007 - 2012, and the low absorptive capacity of the domestic
market in Indonesia.
A GOOD HOPE FOR 35 000-MW PROJECT
Coal producers have a good hope for the project of 35,000-MW
power plants that will be developed this year. Secretary General of
Aspebindo Ekawahyu Kasih gave his appreciation to the project
because 20,000 MW of the capacities will be generated by coalfired power plants (PLTUs) that will consume coal from the
country.
ADDITIONAL 130 MW NEEDED
PT Freeport Indonesia needs an addition of 130 MW of power
supplies to operate its underground mine. SVP Geoscience &
Technical Services Division of Freeport Wahyu Sunyoto said the
total capacity of Freeport’s power generation is 220 MW, and 195
MW of the capacity is generated by coal-fired power plant (PLTU).
TO DEVELOP TWO SEAPORTS OF COAL
PT Asiatic Universal Indonesia will develop a Main Seaport and coal
processing facility in Muara Badak and Merangkayu of Kutai
Kartanegara in East Kalimantan. President Director of Asiatic Herru
Tomo Husodo said the development of the seaport will be
completed in the year 2017 by investing Rp4 trillion.
TO STOP MINING
PT Garda Tujuh Buana Tbk will terminate its coal mining
operations by April 2015. The mining cost has so far been so high
and the market is bearish. "During the period of transition the
workers will be dismissed and suspended and the contract of
barges will be cancelled," said President Director Ratendra Kumar
Srivastva.
600 MW OF ELECTRICITY TO BE EXPORTED
PT PLN ensured that it will continue a plan to export electricity
from Riau Islands to the peninsula of Malaysia. Head of Public
Relations of PLN Bambang Dwiyanto said coal-fired power plant
(PLTU) of Riau is a joint-venture project of PLN, Tenaga Nasional
Berhad and PT Tambang Batubara Bukit Asam Tbk with capacity of
2x600 MW and it is now in progress of construction. The export of
electricity is targeted approximately at 600 MW starting in the year
2017.