RI’s coal to shine in global market as China cuts its exports

Indonesia’s coal exports would get a better opportunity in the global market after, China – the world’s largest coal producer – reduced its exports by 20 million tons in order to meet domestic demand, Bisnis Indonesia reported in its Tuesday edition.

“The coal market potential is now good and the opportunity (to export) is widely opened,” director-general of geology and mineral resources Simon Felix Sembiring said in Jakarta on Monday.

However, Simon said companies will need reinvestment to increase the production and seize the opportunity.

He admitted that many foreign buyers are interested in Indonesia’s coal.

For example, Tai Power, a Taiwanese company, has expressed an interest in buying coal from the state-owned PT Bukit Asam (PTBA). But difficulties in transportation have made PTBA to fail to meet the demand.

The government’s priority, according to Simon, would be to finalize the draft law on general mining and make efforts to increase investment, which is facing a tough task with zero-growth at present.

But it might not be easy for the industry to meet the expectation as it has been facing problems, including the overlapping area in reserved forests.

“The settlement of the issue regarding mining operations in the reserved forests is waiting for the House’s (House of Representatives) approval,” Simon said.

Currently, there are 22 mining companies which already had the license issued by the ministry of energy and mineral resources that could not continue their operations in the reserved forests.

The minister has sought solution for the 22 companies to continue operations, Simon said. (*)