South Sumatra to build coal ports

Indonesia's South Sumatra provincial government will spend 1.8 trillion rupiah (US$200 million) to develop coal ports in Tanjung Api-api and Tanjung Carat, a local government official said.

The ports will be significant to boost coal exports from the province, said Yohannes Hasiholan Toruan, the head of South Sumatra Development Planning Agency as quoted by Bisnis Indonesia on Wednesday.

?We have coal deposit of 22.4 billion tonnes with annual production of 10 million," said Yohannes in a briefing on the master plan for developing Indonesia's economy on Wednesday.

Based on the master plan, the central government has agreed to earmark South Sumatra as the production centre for strategic commodities including coal, natural rubber, palm oil, coffee and chemical industry, he added.

The province will also spend 16.29 billion rupiah to develop coal and palm oil plantations in Pendopo area in Muara Enim regency.

"The central government plans to spend 100 trillion rupiah to build a bridge to support development of the Sunda Straits," he added.

The bridge will connect resources-rich Sumatra island with Java, the country's centre of economy.

Yohannes said the provincial government has earmark areas in the province as strategic areas including the province's capital city of Palembang, Ogan Komering Ulu Timur, Ogan Komering Ilir, Pagar Alam, Lubuk Linggau, and Danau Rantau Selatan.(*)