Gresik's coal briquettes need more distributors

Small enterprises and cooperatives in Java, Bali and West Nusa Tenggara have great potentials to become coal briquettes distributors from state coal miner PT Tambang Batubara Bukit Asam's Gresik coal briquettes processing plant that has annual production capacity of 120,000 tons.

The head of Gresik Coal Briquettes Development Project (P2B2), Moch. Qohar Setianto, said coal briquettes had become more increasingly popular among many small enterprises, especially in East Java, because of its cheap prices and effective heating.

"This year, we target to increase the volume of briquettes sales to 6,500 tons, with an average selling price of Rp 350 to Rp 400 per kilo," he said. Last year, he added P2B2 sold 4,800 tons of briquettes through 47 distributors.

He noted that coal briquettes were not popular among households but were used widely by small-scaled businesses such as tofu producers, hatchery and coffee drying industry. The largest users had been hatchery industries.

P2B2 Gresik has been producing since 1997. It has production capacity of 120,000 tons of briquettes per annum. However, because of the weak market demand, the plant has never run into its full capacity. It only produces 700 tons per months or 84,000 tons per annum. (*)