Coal Fund not for Ombilin mining field: Legislator
Tuesday, July 18 2000 - 03:30 AM WIB
Legislator Pramono Anung has called on the government not to use the coal fund to finance the development of PT Batubara Bukit Asam's Ombilin mining field in Sawahlunto.
Pramono said that he disagreed with the director general of general mining's plan to use the coal fund to invest in Ombilin, noting that Ombilin was not a good venture. He argued that coal mining in Ombilin had been dominated by illegal miners, and therefore, it would not be profitable to invest in Ombilin.
He suggested that Bukit Asam offered Ombilin to prospective investors.
He also calls on the government to use cheap funds from international donors, including from the Japan Foundation, to develop the Ombilin Mining Training Center.
He noted that the coal fund -- collected from the government's portion of income from coal mining companies, namely 13.5 percent of coal sales - was currently managed by the Ministry of Finance.
And therefore, the coal fund cannot be solely allocated for Ombilin. There are many more pressing needs for the government to finance. (*)