DMO Reaches 55 Million Tons of Coal

JAKARTA - Uptake of domestic market obligation (DMO) coal until November 2014 reached 55 million tons, or approximately 40 million tons to reach this year's target of 95 million tonnes dtetapkan.

Director General of Mineral and Coal stone Ministry of Energy and Mineral Resources (MEMR) R. Sukhyar said local coal market has not fully formed so DMO predefined targets difficult to achieve.

"DMO coal was supported by the power generation sector, since the existence of obstacles in this sector would also interfere with our target," he said, Sunday (30/11).

Furthermore, he said next year will ditngkatkan DMO coal to 125 million tons. associated with it, it is optimistic to achieve production targets in the coming years.

He reasoned, next year some government and private power projects that use coal as raw materials will soon be operational. "Slowly but surely the domestic coal market will grow as the operation of coal plants," he explained.

Furthermore, Sukhyar argued that limiting the DMO policy will reduce the export of these commodities. Furthermore, he added, the decline in exports will mengerus royalty revenues from coal mines sector.

"Royalty obviously will suffer if the export is reduced, but the government had anticipated this condition," he said.

Meanwhile, Director of Business Development of Coal Bambang Tjahjono Setiabudi said national production this year will break the 416 million tons. Because production in early November 2014, the company recorded a coal production reached 346 million tons.

"By the end of my estimate penetrating production 416 million tons," he said.

Bambang argued Indonesian coal production in the coming years will not budge from that number. Because, he said, the government plans to limit the production of coal in the range of 400 million tons per year.

"Control of production it is certainly necessary, to maintain the continuity of the mine and ensure the availability of sufficient supply of coal for the national industry, 'he concluded.

Demand for The Coal Industry

JAKARTA. Although the national coal production from time to time continue to increase, but the utilization of non-renewable natural resources in the country that actually remains stagnant. In fact, the supply to the domestic obligations, nor the domestic market obligation (DMO) of coal by the end of this year is predicted to not be achieved.

Gultom Guska, Head of Production Division of the Directorate General of Mineral, Coal and Coal Ministry of Energy and Mineral Resources (ESDM) says, the low utilization of coal in the country due to the demand of PT PLN and private power companies are still low. "We projected domestic demand until the end of 2014 only reached 70 million tons," he said, Wednesday (26/11).

The Government through the Minister of Energy and Mineral Resources Decision No. 2901 K / 30 / MEM / 2013 requesting the use of coal in the country in 2014 reached 95.55 million tons. Details, for plants owned by PT PLN as much as 57.4 million tons, steam power plant (power plant) privately owned as many as 19.91 million tons, as well as to the needs of the industry as much as 9.8 million tons.

However, until October 2014, the Ministry of Energy and Mineral Resources of the total realization record coal production reached 342.3 million tons, the export volume has reached 297.3 million tons.

As a result, the realization of coal utilization in the new country of 45 million tonnes. "For November 2014, the use of coal by PLN and independent power producer (IPP) has reached 55 million tons," said Gultom.

In addition to the lack of demand from steam power plant (power plant), the program increase the added value of coal in the country until now has not been running. "Private power plant has not been as expensive investment, while demand for the coal industry is also not optimal," he said.

Bambang Dwiyanto, Senior Manager Corporate Communications PT PLN explained, although there are late operating coal plants, large-scale plants such as power plant 2x200 MW Milk Base in North Sumatra, and Nagan Raya plant of 190 MW in Aceh have started to operate, so that the use of coal in the will could be improved. "However, the exact number I can not be sure," he said.

PT.BA Advanced Technology Will Have Change So Coal Oil

PT Bukit Asam Tbk. exploring cooperation with Australian company related coal processing technology into synthetic oil.

Director of PT.BA Milawarma said although not easy, the company wants to focus on acquiring the technology so that it can be brought to Indonesia.

"This technology is not yet commercially available in the market, but it is enough proven and certified. In the remainder of this year, PT.BA will focus on the acquisition, "he said on Tuesday (10/28/2014).

Related to the concept of cooperation, Milawarma said PTBA could just buy the technology or co-owns the Australian company's shares.

"So, we acquisition that could be brought to Indonesia," he said.

He explained to the coal processing technology, about 1 ton of coal can be processed into synthetic oil and 1 Barek coking coal.

"In addition, the cost of the process is not too expensive, the method is not complicated process, coal can be directly processed into synthetic oil and high-quality coal," said Milawarma.