Govt delays construction of five coal briquette plants

The government has delayed the construction of five coal briquette plants due to lower than expected demand, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Thursday.

He was quoted by Bisnis Indonesia daily as saying that the government would for the time being to focus resources to three new coal briquette plants.

The government initially planned to develop eight coal briquette plants with total investment of about Rp 284.5 billion (US$1=Rp 10,300).

Purnomo said that the funds initially allocated for the five plants would be diverted to the existing three new plants for working capital.

He said that demand for coal briquette was still low because the government still provide subsidy for fuel: the alternative energy source.

Purnomo said that coal briquette production in 1993-2000 reached 86,022 tons, of which 83,227 tons came from the state-owned coal mining firm PT Bukit Asam Batubara.(*)