Coalminers ready to sell more output in domestic market
Wednesday, July 13 2005 - 02:08 AM WIB
Jeffry Mulyono, the association's chairman, said in Jakarta on Tuesday that the introduction of the domestic market obligation would be needed to support the government's energy saving program under which the government encouraged industries to use coal in a bid to reduce dependence in oil.
According to him, the government could issue a regulation requiring coalminers to sell at least 30 percent of their production in the local market. "The volume of coal sold to the local market can be adjusted every year according to the needs," he told reporters after signing a memorandum of understanding (MOU) with the China National Coal Association (CNCA).
The coal demand in the domestic which totaled about 36.2 million tons in 2004 is estimated to increase sharply to 194 million tons this year because a number of industries have switched to coal due to the sharp increase in fuel prices.
Jeffrey Mulyono also said that production last year stood at 134 million tons and estimates for this year are 155 million tons on the back of increased capacity and the entrance of new players.
"Out of that production, our exports will still stand above 100 million tons as domestic demand will only reach about 45 to 50 million tons," Mulyono said.
Commenting on the government's recent move to increase the price of diesel oil sold to several industries including the mining sector, Jeffrey who is also the president director of PT Berau Coal, said that the increase in the diesel oil price to more than Rp 4,000 per litter from Rp 2,100 per litter previously would not pose a major problem to coal mining operations.
"So far, there are no reactions from the members on the increase in the diesel oil prices. Usually, if there is no major opposition, most of the association's members support the new price policy," he said. (godang/dino)