Coal producers cautious on business expansion

By Tri Subhki R

Coal producers in Indonesia are cautious about expanding their business in the current sluggish coal market. They give more focus on cost efficiency though it is a good time for coal producers to acquire new coal mines.

"Coal producers always look for new opportunities and good assets. It is a good time to expand, but in the same time coal producers are cautious and very selective," Marketing Director of PT Adimitra Baratama Nusantara Michael Soerijadji said in 3rd Annual Business Meeting of Indonesian Coal Producers and Buyers.

In the current weak coal market demand, many coal mines were forced to shut down their operation and need fresh capital investment.

Earliana, Assistant Manager of PT Bayan Resources, in the same occasion, confirmed Michael's statement that coal producers are very selective in acquiring new assets.

Many analysts expect that the coal market will eventually rebound in the longer term instead of near term. Director of Adani Global, an Indian coal company, also believed that energy sector is a long-term investment. "We keep on looking for new opportunities," he said on the same occasion.

Editing by Johannes Simbolon