Indonesian Coal Resources Reached 105 Billion Ton

COAL

Indonesian Coal Resources Reached 105 Billion Ton

SELASA, 31 MEI 2011 00:00 WIB

NUSA DUA. The total coal resources in Indonesia are predicted reaching 105 billion ton, in which coal reserves is predicted 21 billion ton. The main coal minings are located in South Sumatera, East Kalimantan, and South Kalimantan. The coal production increased about 26 % per year for the last five years. Recently, 75 % of the coal total productions are exported, especially to Japan, Taiwan, South Korea, and Europe.

Most of exported coal quality are sub-bituminous coal and bituminous, while low rank coal are especially used for domestic market. “Indonesia will continuously allow the double role of coal, which is as state income resources, and also to fulfill domestic energy needs. The increase of coal demand in domestic will be along with the acceleration program to construct 10.000 MW electricity capacity of Stage I and 10.000 MW of Stage II. In the Stage I, power plant is 100 % of coal. For the Stage II, power plant will consist of 40 % of coal and the rest 60 % of new and renewable energy, especially geothermal, said the Minister of EMR when opening The 17th Annual Coaltrans Asia, Monday (5/30).

The coal utilization as fuel will be continuously allowed by the government to decrease the dependency towards oil fuel. In regulation aspect, the government has issued Minister of EMR’s Decree Number 34 Concerning The Priority of Mineral and Coal for Domestic Needs Supply. Based on the decree, Domestic Market Obligation (DMO) is a must for all coal mining companies.

“The obligation of DMO is stated in Coal Contract of Work (Timbara). Company could export part of its production after the domestic needs have been fulfilled,” says the Minister.

The government has managed coal trading price which is mentioned in Minister regulation Number 17/2010, regarding procedures to determine the benchmark price and mineral and coal trading. By the issuing of the regulation is hoped to be able to give assurance reference for coal producers and businessman in Indonesia.

Related to the increase of coal’s added value, Law Number 04/2009 mandates that all minerals and coals have to be processed in Indonesia. “This is one of our efforts to optimize the use of mining industry for Indonesian. The success of this policy will increase the state income, new occupation is available and will create coal multiplier effect,” says the Minister.

The added value increase could be done by increasing low rank coal quality (upgrade), liquefaction, and gasification. Recently, some private companies have developed process to increase low rank coal. Some coal liquefaction and gasification project are also based on the planning and evaluation. (AK)

(ADMINISTRATOR)

Source: ESDM