Indonesian Coal Mining Association (APBI) said that Indonesia’s coal
production in the first quarter of 2013 reached 93 million tons. APBI Chairman,
Bob Kamandanu, in Jakarta on Thursday (5/16), said that in general, production
is up about 2% - 3% from 2012 production. High production increase up to 20%
for medium and lower quality coal. Bob said that of the total coal production
in the first quarter of 2013, approximately half of which are low quality coal.
Low quality coal is also widely demanded by the export markets.
Although coal production increased, Bob said that absorption in the
country has not grown significantly. He mentioned that absorption of coal by
the domestic market is around 40 – 60 million tons per year. Because domestic
consumption is still low, according to him plan to cap coal export has not been
necessary. At this time, to determine future coal policy, Bob asked the
government to provide data on Indonesian coal reserves and needs. APBI stated
that in 2012, national coal production reached 384 million tons.
Meanwhile, the Ministry of Energy and Mineral Resources set target of
coal production for 2013 at 390 million tons. Of this amount, 74.32 million
tons were allocated to meet the domestic demand. APBI predicted that national
coal exports this year to reach 320 million tons, or approximately 80% of the
total production which is estimated at 400 million tons. The high export of
coal is due to the low absorptive capacity of domestic coal consumers.
“Consumption of coal in the domestic market is still low, so it is still
oriented to the export market”, Bob said.
Coal produced by coal producers is exported to several countries, such
as China and India. He acknowledged that the increase in coal production this
year is not as aggressive as in the previous years because the world’s economic
condition has not been fully recovered. Demand for coal is rising, but the
increase is not so great. Moreover, there new emerging coal producers, such as
Mongolia, Canada, New Zealand and United States which began flooding the market
with their products. Excess coal supply also makes coal prices not to move up.
Meanwhile, relating to the government’s plans to issue a policy that
bans export of raw mineral ores, coal, and gas which will be effective from 2014,
the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) promised to
encourage entrepreneurs to prepare themselves for the ban. According to Kadin
Indonesia’s Vice General Chairman for Industry, Research, and Technology,
Bambang Sujagad, entrepreneurs who wish to keep doing export should meet three
conditions. Firstly, Mining Authorization (KP) owned must fulfill the clear and
clean requirements given by the regent to the Ministry of Energy and Mineral
Resources.
Second, mine operators must have submitted a proposal containing plans
for the construction of smelter or cooperation with smelter owner to process
the mining products produced. Third, mine operators are also required to pay
taxes and duties that must be paid. Bambang said that the government gave two
alternatives, namely granting quotas or payment of export duties. Bambang
believes that payment of export duties is better option.
According to Bambang, there are some entrepreneurs who declared their
intention to build smelter, such as aluminium smelter and nickel smelter in
eastern Indonesia. However, Bambang admitted that not all mine operators are
able to build their own smelter. Because, the construction of smelter requires
a quite substantial amount of investment. (E)
Business News - May 22,2013
No comments:
Post a Comment