Average production of coal
in the world reached 8.5 billion tons a year, and that amount was consumable to
meet the energy needs of the human race. China is the largest producer in the
world with an average production per year at about 3.7 billion tons, followed by
the United States which produces 800-900 million tons.
Meanwhile, India produces coal at averagely 600 million
tons per year. Yet however, the emerging nation is still importing coal of 120
million tons from Indonesia. Indonesia is the biggest coal exporter in the
world because the Indonesian domestic market has not been developed, so that
most of the national coal production is destined for export.
The Ministry of Energy and Mineral Resources (ESDM)
reported that in 2014, the government aims to produce 400 million tons of coal,
slightly down about 5% of the realization in 2013 which reached 421 million
tons. Of the total production target this year, about 95 million tons or 23.7%
will be used domestically, while the rest is exported to several countries,
such as China and India.
R. Sukyar, Director General of Mineral and coal at the
Ministry of Energy and Mineral Resources, in Jakarta, on Wednesday (August 20),
stated that due to high coal exports, domestic coal consumption is low. So the
government is seeking to increase domestic demand, from around 65 million tons
in 2013 to 95 million tons this year.
In the year, Sukyar said, the government focused more on
increasing state revenues by increasing surveillance and increasing coal
royalties. So, without raising coal production figures, the government can gain
bigger revenue from this sector. Sukyar admitted that coal is still the
mainstay of the mining sector to achieve the target set by the government.
He said that coal contributed around 80% to total state
revenue from the mining sector. Moreover, following a ban on export of minerals
since January 12, 2014, it makes the role of the coal sector very important,
because this policy will cause foreign exchange loss of USD 5 billion to
Indonesia.
The Ministry of Energy and Mineral Resources estimated
that domestic coal demand for 2014 reached 95,5 million tons with the largest
allocation to the PT PLN (Persero) at 57.4 million tons, followed by IPP at
19.9 million tons and the cement industry at 9.8 million tons. While, the
domestic Market Obligation (DMO) is 25.90%.
He said that coal mining companies are required to meet
the minimum percentage of coal sales for domestic interest at 25.90% of the
estimated coal production in 2014 at 369 million tons, which originates from 50
companies as holders of Coal Mining Agreement, one state-owned company, an 34
companies as holders of coal mining business license.
The Ministry of Trade began to disseminate the Minister
of Trade Regulation No. 39 Year 2014. The Regulation contains rules on coal
export which will come into force on 1 September 2014, the regulation
stipulates that every implementation of coal exports must first obtain a
registered coal exporter (ET Batubara) from the government.
Technical Executive Officer of the Director of Industry
and Mining Export of the Ministry of Trade, Thamrin Latuconcina, said that the
recognition as ET Batubara is stipulated by the Director General of Foreign
Trade. He also mentioned that in order to gain recognition as ET Batubara, the
company concerned must file a request to the Director General of Foreign Trade.
It is explained that ET Batubara is valid for three years
and can be extended. The submission of the request should be accompanied with
an attached copy of Production Operations IUP, Production Operation IUPK, and
sales or Special Production Operations IUP for processing and refining. On the
other hand, the company concerned shall also attach a Taxpayer Identification
Number (NPWP), copy of Company Registration (TDP), which is recommended by the
Director General of Mineral and Coal of the Ministry of Energy and Mineral
resourced.
In response to this matter, the Indonesian Association of
Energy and Coal Suppliers (Aspebindo) considered that the regulations
concerning the requirements for coal exports are harmful to entrepreneurs.
Entrepreneurs considered that the rules are good, but actually contain a
problem.
According to the Secretary General of Aspebindo, Ekawahyu
Kasih, the regulation should better be postponed until all is announced. He
worried that this regulation could lengthen the bureaucracy chain. Not to
mention that there is requirement that to obtain a recommendation as registered
exporter, there must be a permission from the local government.
He said that currently employers are too traumatized
because licensing is always identical to costs. The key word, he said, is that
this rule is basically good, but it would be better if the Ministry of Energy
and Mineral Resources settled its work regarding the Clean and Clear (CNC)
status, the number reached thousands of IUP. So, do not included requirements
that have not been settled. (E)
Business News - August 22, 2014
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