Indonesian Political, Business & Finance News

Use of coal

Use of coal

From Sinar Pagi

According to the Department of Mines and Energy and Pertamina the reserve of oil and natural gas will run out in the not too distant future. As a consequence the government considers coal as an alternative to meet the demand for fuel. Indonesia is rich in this mineral which is found in almost all islands, particularly Kalimantan, Sumatra, Irian Jaya and Java.

We know that about 50 companies have concessions for exploiting this mineral but not more than five of them are in good shape. We really need coal badly to replace oil and gas, and also for a non-oil export. The two state-owned companies, Bukit Asam in South Sumatra and Ombilin in West Sumatra, are already capable of supplying PLN (State Electricity Company).

But we have to produce more coal to meet the demand not only from China, Taiwan, Korea and Singapore but also from Australia. Australia has modern and sophisticated equipment to convert coal into generating power for electricity. They want to buy coal from Indonesia because it is nearer to Australia than China or Africa.

But the problem is that the coal deposits found in Indonesia seems to be difficult to reach.

H.G. MALIKMASS

Jakarta

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