Indonesia, Myanmar sign coal exploration agreement

Indonesia, Myanmar sign coal exploration agreement

YANGON (DPA): Indonesia's PT Austindo Nusantara Energi has signed an agreement with Myanmar's Ministry of Mines for coal prospecting and exploration in the country's southern Taninthayi state, local news reports said Saturday.

The agreement was signed Friday between the firm's president George Santosa Tahija and Soe Myint, director general of the Myanmar ministry's department of geological survey and mineral exploration, said the New Light of Myanmar newspaper.

"We have provided incentives in the form of initial tax exemption and in addition, an option has been given to purchase government interest at an agreed price after the positive feasibility study," said Minister of Mines Brigadier General Ohn Myint.

Myanmar's current junta, the self-styled State Peace and Development Council (SPDC), has opened up the country to limited foreign investment since seizing power in September 1988, and allowed the local private sector a greater role in trade and business in restricted sectors.

At a seminar on trade Friday SPDC Second Secretary General Tin Oo claimed the private sector accounted for 75 percent of the country's gross domestic product last year compared to 69 per cent ten years ago.

He added that private traders accounted for 68 percent of the country's exports in fiscal 1997/98, ending on March 31, and 72 per cent of all imports.

Tin Oo urged the private sector to invest in new export industries and to curb imports as a means of overcoming the country's currency crisis.

Myanmar's blackmarket rate for the kyat currency is now close to 350 to the dollar, compared to the official fixed rate of about 6 kyat to the greenback. Most transactions are carried out at the blackmarket rate or in U.S. dollars.