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

View JSON | Print