Govt urged to finance coal-briquette development projects

The government has been asked to provide financial assistance for organizations currently involved in the development of coal-briquette as the best alternative of coping with the future fall in oil fuel supply, Suara Karya daily reported Wednesday.

Funds for coal-briquette development projects could be from state funds allocated to compensate fuel price hike, and from coal royalty, according to Julius Bobo, general chairman of a cooperative dealing with coal-briquette development (KPBBN).

?We really hope that the government will set aside a portion of those funds for briquette development,? Julius said in a news conference in Jakarta Tuesday. He was explaining about a national workshop on the use of coal-briquette to be held in Jakarta on Thursday.

Julius said that KPBBN, which is active in coal-briquette development, lacks funds for its projects.

He further said the use of firewood, mostly by small-scale and household industries, currently accounted for 64 percent of the country?s total energy consumption that amounted to 54.4 million barrels of oil equivalent. Meanwhile, the use of kerosene reached 30 percent.

Julius warned that the country?s oil fuel supply would decrease in the future due to the fall in oil reserves. Moreover, firewood supply would also drop because of deforestation.

Meanwhile, the government?s decision to revoke fuel subsidies would make it harder for many to buy oil fuel in the future, Julius added.

Julius said KPBBN?s coal-briquette was mostly used by industries in Jakarta and its surrounds, and in East Java, Central Java and Yogyakarta.

KPBBN produced nearly 22,000 tons of coal-briquette in 2001, down from the 22,873 tons in the previous year. (*)