RI may raise its coal exports by 5% this year

Indonesia, the world's biggest exporter of coal used by power plants, may increase exports of the fuel by 5 percent this year, the slowest pace in five years, as domestic demand rises, the Bloomberg reported on Monday from Singapore.

Shipments may climb to 117 million metric tons in 2006 and to 121 million tons next year, T. Soedjoko, executive director of the Indonesian Coal Mining Association, said at a conference in Singapore, citing forecasts by the energy ministry.

The country's exports rose 18 percent to 111 million tons last year, from 93.8 million tons in 2004, Soedjoko said.

Indonesia, which last year overtook Australia as the world's largest coal exporter for utilities, has doubled shipments since 2000. Companies including PT Bumi Resources, the nation's biggest producer, and PT Adaro Indonesia boosted investment in output last year as prices jumped.

Indonesia's coal production may gain 8.6 percent this year to 164 million tons, and rise to 175 million tons in 2007, he said.

Production may rise an average of 13 million tons a year between 2005 and 2009 as producers mine more coal, Soedjoko said.

The growth is forecast to slow to 5.6 million tons in 2010 to 2015 because of aging mines, he said. (*)