China and India Look For Coal in Indonesia
Thursday, 15 May, 2008 | 16:09 WIB

TEMPO Interactive, Jakarta: Companies from India and China are seeking coal in Indonesia. They are National Thermal Power Corp (NTPC) (an electrical company from India); Power Trading Company (PTC); Larsen and Turbo; Reliance; Agrawal Coal; and Watien. The head of the Indonesian coal mining association Jeffrey Mulyono said India and China has been competitively searching for coal resources as Indonesia has a large supply. “Fifteen companies have stated their interest already,” he told to Tempo yesterday.

There is a wide demand for coal in India and China, especially for the steam power plants with low heat, the same as a 10,000 megawatt steam power plant in Indonesia.

Jeffrey confirms domestic supply will be secured although it is approached by India and China. However, he suggests that Indonesia establish a coal security system. “It can be arranged through a domestic market obligation (DMO) or in the planning of the state budget,” he said.

The Indonesian coal mining association (APBI) recorded that in 2006, Indonesia produced 193.54 tons of coal; 145 million tons were exported to Asia, Europe and other countries while 45.5 million tons were allocated for domestic needs such as electricity and the cement industry. It is expected to have 225 million tons of coal in 2009 with a composition of 75 million for domestic needs and 150 million for export purposes.

Indonesia is the largest coal exporter in the world besides China and India. But they have more demand in their countries than Indonesia.

An expert ob the staff of Energy and Mineral Resources Minister said the control over coal mining in Indonesia cannot be sold to a foreign company. They are only allowed to purchase coal from a local company.

NIEKE INDRIETTA