Sign up | Log in



Home  >>  Daily News  >>  Indonesia News  >>  Energy  >>  Indonesia to cap coal shipments to ensure local sufficiency

NEWS UPDATES 16 October 2009

Indonesia to cap coal shipments to ensure local sufficiency

Related Stories
October 11, 2009
Indonesia’s Pertamina, Exxon unit start talks on Cepu operation

October 2, 2009
Indonesia: Energy regulator recommends extensions for four blocks

September 25, 2009
Indonesian power firm to reduce fuel cost by $2.6bn

September 14, 2009
Indonesia targets $19bn in revenue from energy, minerals

September 12, 2009
Indonesian oil and gas blocks attract few investors

Indonesian government plans to cap coal exports at around 150 million tons a year in a bid to guarantee supply for domestic demand, especially for electricity generation, an official was quoted by the Jakarta Post as saying.

"The figure is based on our estimate of the domestic demand for coal," Bambang Setiawan, director general for coal, minerals and geothermal energy at the Energy and Mineral Resources Ministry, told reporters Wednesday.

The export cap will be included in a government regulation on domestic market obligations (DMO).

"We expect the regulation on the DMO to be concluded this year," Bambang said.

According to Bambang, national coal production this year is targeted at 230 million tons. He said that as much as 161.5 tons of this total were for export and the remaining 68.5 tons were for the domestic market.

The Indonesian Coal Producers Association has estimated national coal production will reach 250 million tons this year while the domestic demand will reach 50 million tons.

Bambang said the domestic demand would increase significantly in the upcoming years as power plants from the government's 10,000 megawatt electricity crash program would begin operation in 2011.

He said the coal demand from the power sector in 2011 would be somewhere between 65 million and 70 million tons a year, up from 40 million to 46 million tons this year.

Bambang also announced a government plan to provide incentives for low-calorie coal producers. Bamband said the government plans to reduce the percentage of the so-called coal production fund (DHPB), which basically consist of development fee and royalty paid to the government.

The government requires low-calorie coal producers to pay the DHPB as much as 13.5 percent of their sales revenue. Bambang said the Energy and Mineral Resources Ministry proposed to reduce the DHPB for low-calorie coal producers from 13.5 percent to around 7.5 percent. The reduction will only be taken from the development fee, while the royalty will remain at 3 percent. "This proposal still needs to be discussed further with the Finance Ministry," Bambang said.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand