ICMA sees growing demand for RI coal from Southeast Asia, South Asia markets

By Cepi Setiadi

Amid growing question over the future sustainability of China as Indonesia?s largest coal export market, the Indonesian Coal Mining Association (ICMA) said that demand for Indonesian coal would increase over the next few years from markets in Southeast Asia and South Asia as they develop new coal-fired power plants designed to match the quality of Indonesian coal.

"I have met with the ambassadors from Bangladesh, Pakistan, Vietnam, Malaysia etc, they said that their country is developing coal fired power plants which are designed to match with Indonesian coal quality," ICMA Executive Director Supriatna Suhala said in his presentation at the 2nd Unlocking Sumatra Coal Potential Conference held by Petromindo on Tuesday.

Supriatna didn't say the amount of coal demand for the next few years. He, however said that for 1,000 Mega Watt of power plants capacity will need about 3 million tons of coal per year.

Indonesian coal miners have started to search for new markets to lessen dependency on China following reports that the latter country plans to ban the import of low rank coal and switch to gas and renewables amid growing pressure to clean up the environment and cut carbon emission. Coal is seen as a major source of air pollution and carbon emission.

Editing by Reiner Simanjuntak