India Aggressive in Controlling Coal Market in Indonesia
Friday, 25 April, 2008 | 19:49 WIB

TEMPO Interactive, Jakarta: Indian investors are more aggressive in searching for coal mines in Indonesia to meet the needs of the country’s energy sources. They are now competing to acquire coal producers from Indonesia.

Head of the Indonesia Coal Mining Industry Jeffrey Mulyono revealed that India and China are the most persistent countries in finding coal. Investors from the two countries are in a race to find an alternative energy source resulting from the rising world oil price increase, which is now nearing US$120 a barrel.

“The Indians mostly come to East Kalimantan,” said Jeffrey, yesterday (4/24). Based on the immigration records of East Kalimantan, the Indians who came to the province have increased two- and-a- half more in number, compared to two years ago. “They are in search of coal mines.”

Sandiago Uno, owner of PT Adaro Indonesia, the second main coal producers in Indonesia, agreed to the matter. “There are many punde-punde (a call for an Indian) to come to Indonesia,” said Sandi.

The arrival of the Punde has attracted the coal business. According to investment bankers, Indians are not only competing with the Chinese but also with the state electric company (PLN), PT Timah and Bumi Resources.

Last year, Tata Power acquired 30 percent of the shares of PT Kaltim Prima Coal and PT Arutmin that Bumi Resources Tbk, the largest coal producer in Indonesia, owns.

Other Indian businesspeople followed by controlling other coal mining. Earlier this year, Star Emmons Resource acquired Bara Energy Makmur which possesses two blocs in Kalimantan. In fact, Tariq Raza, Director of ETA Star India Project Ltd, mentioned that he will acquire four or five other coal mines. They will build a 1,200 megawatt-electric generating plant in Andhra Pradesh and Tamil Nadu, India.

In March, Reliance Power purchased 100 percent of mining ownership in North Sumatera, believed to contain 2 billion tons of coal. Reliance Power relies on the new mining to support the power plant in Andhra Pradesh, India, which requires between 14 tons and 15 million tons of coal per year.

Binani Group, a cement producer of India, was said eyeing PT Berau Coal, the fourth largest coal producer in Indonesia. In fact, other interested Indian companies included Anil Dhirubai Ambani Group (ADAG) and JSW Energy.

Other investors mentioned by several Indian media that are looking at coal mining in Indonesia include Coal India Ltd, Lanco Infratech Ltd, Madhucon Projects Ltd, PTC India Ltd, MMTC Ltd and Infrastructure Ltd.

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