The Ministry of Energy and
Mineral Resources (MEMR) is targeting coal production in 2014 at 397 million
tons, or lower than last year’s actual production. It is as part of efforts to
control coal production nationwide. Director General of Mineral and Coal of the
Ministry of Energy and Mineral Resources, R Sukhyar, Friday (January 3,2014)
asserted that coal production should be limited. It is aimed at optimizing
revenues from the mining sector and maintaining adequate reserves of coal as an
energy source in the country.
For 2014, the government set national coal production
target at 397 million tons, while domestic supply obligation for coal is 95.6
million tons. The production target is lower than the actual production of coal
from January to November 2013 which is 421 million tons, and 89 million tons
were absorbed by the domestic market.
Sukhyar said that his party wants to focus on optimizing
revenue from coal, and not to increase production. Therefore, coal production
surveillance system must be improved to prevent unrecorded production and
export of coal. He admitted that so far the control has not been optimal so
that there is unrecorded production. In addition, coal production is also
necessary given that this commodity is one of energy sources which is ready for
use. Therefore, there must be efforts to increase coal reserves.
Based on the application of database system developed by
the Geological Agency of the Ministry of Energy and Mineral Resources jointly
with NEDO, there is a significant change in the amount of coal resources in
Indonesia. If the previous amount of coal resources was 26 billion tons, it
became 65.4 billion tons now. And, coal reserves from 2.6 billion tons to 12
billion tons.
He warmly welcomes the cooperation between the Ministry
of Energy and Mineral Resources and NEDO with focus on management of data and
information on coal in increasing our knowledge and understanding of the
potential of coal resources and its quality. It is said that the role of coal
will increase in the future. Therefore, the existence of data and information
that is more accurate and can be accessed easily by coal business operators is
very important. Population growth and the demand to protect forests and water
resources make expansion or extension more difficult. Thus, attention to
develop the underground must begin from now.
Meanwhile, Chairman of the Indonesian Coal Mining
Association (APBI), Bob Kamandanu, stated the plan on restrictions of national
coal production. Restrictions on the production of this commodity is aimed at
securing coal reserves as an energy source and increasing the price of coal in
decline.
Bob explained that world economic slowdown is predicted
to cause potential decline of world coal prices. He said that the price decline
was due to changes in importers’ demand for low-calorie coal. Bob hopes that
the government will invite business men to discuss the decline in coal prices.
He considered that the discussion should produce policies and strategies that
create a shock therapy in the international market.
Drastic
decline in coal prices makes holders of mining business license (IUP) in
several regions to stop production. Most of the mining companies that closed
operations produced low-calorie coal types, namely 4,200 kilos of calories per
kilogram aka kcal / kg. Citing data of the Ministry of Energy and Mineral
Resources, the average benchmark price of coal is USD 85.39 per ton in 2013, or
down 11.81 percent from 2012 which is at USD 95.48 per ton. (E)
Business News - January 8, 2014
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