- REUTERS/David Stanway
VIVAnews – Ministry of Energy & Mineral Resources (ESDM) said that out of a total of 371 million tons of coal produced in Indonesia throughout 2011, 78 percent of its sales were still dominated by foreign markets, whereas the domestic markets could only absorb 22 percent.
Director of Coal Management Development of the Ministry, Edy Prasodjo, stated that with the rising price competition between coal and oil, the domestic demand of coal will surely increase, even though it is relatively low at the moment.
“Foreign sales were dominating the market by 78 percent while the domestic market only absorbed around 22 percent,” said Eddy today, Feb 2.
Edy said that the domestic market is still dominated by steam-based power plants (PLTU) owned by state electricity company PLN and private companies as well as the cement industry. He predicted that the yearly domestic coal demand will rise as many PLTU projects are in completion.
The government has also issued a Energy & Mineral Resources Ministry Regulation No.34/2009 on Prioritizing Mineral & Coal Supply for Domestic Demands, known as Domestic Market Obligation (DMO).
“DMO has to deal with its own obstacles. For example, the incompatibility between the coal quality and the domestic requirement. To overcome this, the government has compiled a quota transfer policy between manufacturers which is being evaluated at the moment,” he said.
Edy said that yearly coal production tends to rise by 10 percent. Based on the exploration activities, Indonesia has 21.13 billion tons of coal reserves in 2010 and 105.18 billion tons of coal resources spread over several islands in Indonesia.
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