Sudjana defends PT Artha Daya

Sudjana defends PT Artha Daya

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana has
defended the designation of PT Artha Daya Coalindo to handle the
sale of coal received by the government from private coal mining
contractors.

Sudjana said Artha Daya's designation to manage state coal
sales was aimed at securing a sufficient coal supply for the
state electricity company PLN which has experienced difficulties
in the past in buying coal for its power plants.

"We don't want to see PLN experience difficulties in finding
coal for its power plants any longer," Sudjana said.

Sudjana approved Artha Daya's appointment last December after
the plan was proposed by Director General of Mining Adjat
Sudradjat.

But the move has drawn criticism from observers and
legislators.

A legislator of the Golkar ruling party, Joeslin Nasution,
recently told The Jakarta Post the designation was in conflict
with Presidential Decree No. 75 of 1996, which orders coal mining
contractors to give the government's coal share to the Minister
of Finance in cash.

Sudjana did not comment on such criticism.

Sudjana stated in a letter dated Dec. 12 that he approved
Artha Daya's appointment because the firm was affiliated with PT
Pembangkitan Listrik Jawa-Bali I (PJB I), which is a PLN
subsidiary.

The company would be able to secure the supply of coal to PJB
I, Sudjana said in his letter.

Existing law obliges coal mining contractors to hand over 13.5
percent of their output to the government as concessionary fees
and royalties.

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

But Sudjana sparked a controversy two years ago when he blamed
Bukit Asam for using the proceeds ineffectively instead of
transferring them to the government.

Sudjana then ordered the company to transfer the money to his
official account.

President Soeharto later issued a decree revoking Bukit Asam's
designation and ordering all private coal mining contractors to
transfer the government's coal share in the form of cash to the
Minister of Finance.

PJB I president Firdaus Akmal has acknowledged that his
company has a 20 percent stake in Artha Daya, but refused to name
the other shareholders.

He said Artha Daya would export part of the government's coal
share after providing a sufficient supply to PJB I.

PJB I has signed a contract with Bukit Asam to supply coal for
its 3,400 megawatt steam power plant in Suralaya, West Java.

But, Firdaus said, Bukit Asam failed once to supply enough
coal, forcing PJB I to find alternative suppliers.

"Artha daya is expected to secure our coal supply for us,"
Firdaus said. (jsk)