Foreign mining firms applying for jobs

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana said yesterday 120 foreign mining companies had applied for coal mining contracts in Indonesia.

Speaking at the opening ceremony of the Third Coaltrans Asia in Nusa Dua, Bali, Sudjana said he hoped their participation would increase the country's coal production.

He said 19 foreign companies had been mining coal in the country.

Sudjana said Indonesia's coal production had increased over the last 10 years, from 10 million tons in 1990 to 51 million tons in 1996.

During the same period, its coal exports jumped from five million tons to 36 million tons.

Currently, Indonesia's domestic demand for coal is 11 million tons a year. Sudjana estimated that demand for coal would continue to increase in accordance with the economic growth.

"By the end of this century, Indonesia's demand for coal will reach 32 million tons per year," he was quoted by Antara as saying.

Indonesia, he said, is striving to diversify its energy sources away from the domination of oil. "We'll reduce our dependence on oil from 87 percent to about 50 percent by the end of this century," Sudjana said.

"Coal will become the second largest energy source after oil," he said.

Sudjana said besides coal, Indonesia would also intensify the use of gas, hydropower and geothermal.

Indonesia, the second largest producer of coal after Australia, increased its share of the Asian market from only five percent in 1990 to about 20 percent now. (bnt)