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)