Govt studying incentive for coal liquefaction supplier

The government is studying to lower the royalty on coal mining companies, which will produce low rank coal and supply to crude synthetic oil plant, a government official said Tuesday.

?We are studying to provide incentive in order to boost coal liquefaction industry through lowering the royalty in case of coal mining companies that produce low rank coal,? said director general of minerals, coal and geothermal energy at the ministry of energy and mineral resources, Simon F. Sembiring.

Besides lowering the royalty, Simon said, the government will also enhance the infrastructure facilities at various places that have potential to build crude synthetic plants.

Currently, the ministry of energy and mineral resources through its research agency, has identified three locations, where low rank coal is abundant, to build crude synthetic plants ? Bangko (in South Sumatra), Berau (East Kalimantan) and Muria in South Kalimantan. (godang)