Indonesia now world's third largest coal exporter

JAKARTA (JP): Steam power plants in Asia, notably in Thailand and the Philippines, depend largely on Indonesian coal, Ambyo Mangunwijaya, president of state-owned PT Bukit Asam, said yesterday.

"Indonesia is now the third largest coal exporter in the world after Australia and South Africa," Mangunwijaya was quoted by the Antara news agency as saying in Lampung, on the southern tip of Sumatra.

He said Indonesia's coal production increased sharply over the last four years from 8.7 million tons in 1989 to 27 million tons in 1993, and that its coal exports soared from 2.7 million tons to more than 17 million tons in the same period.

Mangunwijaya projected the country's coal output would further increase to 71 million tons in 1999, of which 31.7 million tons will be used within the country, mainly by cement and power generation plants, and 39.2 million tons will be exported.

Production will reach an estimated 35 million tons this year, of which 22 million tons will be exported.

He told a House of Representatives delegation visiting the coal terminal in Lampung that despite the promotion of exports, coal supplies to domestic power units would be secured at low prices.

"We will maintain the price of our coal for the Suralaya power station in West Java at Rp 70,000 (US$32.50) per ton," he declared.

Bukit Asam supplies nearly five million tons of coal each year to the four units of the Suralaya station. The supply will increase sharply when three additional units join the huge power plant on the western tip of Java.

Mangunwijaya reported to the House delegation that Bukit Asam had doubled its coal output in South Sumatra to 10 million tons a year with an additional investment of Rp 680 billion.

The additional investments included Rp 332 billion for improving rail coal transportation from its Tanjung Enim mine to the Tarahan coal terminal, which is capable of handling 12 million tons a year.

The bulk of Indonesia's coal is produced in West and South Sumatra and East and South Kalimantan where 10 major mining contractors, including joint ventures with foreign companies, are currently operating. (vin)