TIA diversifies to domestic market

By Tri Subhki R

PT Tunas Inti Abadi (TIA), a coal mining subsidiary company of PT Reswara Minergi Hartama, has started to look for more market opportunities at home as demand from China is anticipated to further weaken.

China?s coal import, according to Feriwan, is estimated to drop by as much as 40 percent compared to last year. For India, a market that initially was expected to offset the lower demand from China, Feriwan suggested that the weak rupee has made import more expensive.

As of early 2014, Feriwan said that China and India markets accounted for as much as 95 percent of TIA?s total sales. ?We expect the proportion will be up to 40 percent for domestic market by next year and the rest for export markets,? he said.

TIA has secured some domestic coal supply contracts including with state-owned electricity firm PT PLN (Persero), cement and fertilizer factories. ?We will supply up to 900,000 tons per year for PLN and approximately 800,000 tons per year for cement and fertilizer factories,? Feriwan said, adding that domestic market is expected to absorb 1.8 million to 2 million tons of TIA?s coal output next year.

Editing by Reiner Simanjuntak