APBI plays down long term risk of China planned import ban

By Bambang Atmaja

Executive Director of Indonesian Coal Mining Association (APBI) Supriatna Suhala said that he was concern on the impact of China?s plan to ban import of low rank calorie coal in short term, but played down its effect for the long term as Indonesia can find new market in Asia.

The director said that the government's plan to build more mouth coal mining power plants could be completed within three years.

?If it is true (China applies the policy), it could mean a calamity for us at first. For short term it is harmful, but in the long run I am optimistic coal remains the main source of energy for Asia,? he told Petromindo.com.

?About a half of our 90 million coal exports to China is low rank calorie coal. (If) 40 to 50 million tons low rank coal can not enter (China), yes would mean a problem,? Supriatna said.

However, he said, many other Asian countries also badly need coal as the main source of energy as the price is cheaper.

"We will not keep relying on China because most of other Asian countries such as Sri Langka, Bangladesh, Pakistan also need it. Buyers from Sudan, Turkey, India, have come to us to look for coal. India's need of coal is huge," said Supriatna.

Editing by Adianto P. Simamora