Artha Daya not to dominate coal sales

Artha Daya not to dominate coal sales

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana has
said that PT Artha Daya Coalindo would not monopolize sales of
coal which the government receives from private coal mining
contractors.

Sudjana said the government might also permit other interested
companies to handle the sales of its coal.

"Chances are still available for other companies to help
secure the government's coal," Sudjana said in a statement sent
last Friday to the House of Representatives Commission V for
industry, mines, trade, manpower, cooperatives and the
environment.

Sudjana was responding to questions raised by some commission
members during a hearing last month concerning the appointment of
Artha Daya as the marketer of the government's coal.

Coal mining contractors are required by law to hand over 13.5
percent of their coal output to the government to cover
concessionary fees and royalties.

Previously, the government assigned state coal mining company
PT Tambang Batubara Bukit Asam to conduct the trading of its coal
shares and transfer the proceeds to the government.

The government later revoked Bukit Asam's appointment under
Presidential Decree No. 75/1996 which rules that the government's
coal share is to be transferred by the contractors to the
government in cash.

Sudjana appointed Artha Daya as the trader of the government's
coal last December, but some legislators pointed out during the
hearing that the decision was in conflict with the presidential
decree.

They also accused Sudjana of awarding the company monopoly
rights over the government's coal.

Artha Daya is a joint venture between some family members of
the country's most powerful top officials and PT Pembangkitan
Listrik Jawa Bali I (PJB I), a subsidiary of state electricity
company Perusahaan Listrik Negera (PLN).

Sudjana said Artha Daya's appointment was aimed at securing a
coal supply for PLN's power plants.

"PT Tambang Batubara Bukit Asam is not able to fulfill PLN's
coal demand," he said.

Aneka Tambang president RA Sunardi refused to comment on Artha
Daya's appointment, but he emphasized that Bukit Asam was able to
fulfill PLN's coal demand.

Aneka Tambang mined 11 million tons of coal last year, 70
percent of which was sold to PLN.

Energy observer Iskandar Mandji, who is also a former
legislator, said it was easier for the government to supervise
the management of its coal if it was handled by a state company
like Bukit Asam compared to private companies.

"There are a lot of mechanisms for the government to directly
supervise the management of its coal if it is handled by a state
company. But how can it supervise a private company like Artha
Daya?" he said.

He also noted that Bukit Asam had planned a big investment to
increase its output and secure more coal supplies to its
costumers.

"I don't see any reason for PLN to worry about coal supplies
from Bukit Asam in the future," Mandji said. (jsk)