Coal Request from Japan Increases 27 July 2011
Production until the end of the year is at 340 million tons
Jakarta - Request for Indonesian coals from Japan will increase fast, it can even reach 28 - 30 million tons until the end of the year, or 33% from the total needs of 90 million tons this year from the country of the rising sun.
From another side, the coal production in Indonesia is ensured to pass 340 million tons this year with the production achievement of an estimated 170 million tons during the first semester this year.
Associate Executive Director of Indonesian Coal Mining Association (ICMA) Supriatna Suhala stated that the demand for the commodity from Japan has started to increase drastically especially during Quarter III and IV following the economy restoration hence needing the resource to activate a number of generators.
"Previously [because of the tsunami incident], a lot of Indonesian coals were not absorbed by Japan. The Volume of Coals that were not absorbed could reach around 5-6 million tons. However, request from that country has been starting to restore especially since entering quarter III and IV this year." he said to Bisnis yesterday.
Aside of request from Japan, there are also request from China and India that still dominate the coal export's market. China imports 36-38 million tons and India at 34 - 36 million tons.
Aside of the three main countries, Indonesian coal commodity also fulfill needs from countries in the ASEAN region such as Malaysia, Philippines, Thailand and Vietnam.
Indonesia has also started to supply coal needs to Sri Lanka and Pakistan. "This year, nations from the Middle East has also assessed imports from Indonesia. As well as Turkey," said Supriatna.
Specific on the production during Semeseter I, ICMA is confident that the coal production could pass more than 170 million tons. Overall in 2011, the production target of 340 million tons is estimated to be achievable.
According to Supriatna, the coal production this year had relatively met no major difficulties. From the total coal production, there are 78.97 million tons or about 23% are being allocated to DMO (Domestic Market Obligation). The rest are for exports.
DMO Realization is low
In another side, based on the data from ministry of energy and mineral resources, domestic's coal supply to the end of March 2011 after the decree is at 78.97 million tons.
Actually from coal supply side to PLN, he said, that there are no problems.
"DMO was not reached because of some delay in the a number of power plants projects on by PT Perusahaan Listrik Negara. Meaning, all of this is mostly caused by technical problems related to procurement or unsuitable quality."
From 78.97 million tons of DMO coal allocation, PLN and other independent power plant produce (IPP) demand of at 55 million tons. The rest are for other industries such as textile, cement and metallurgy.
Referring to the high demand especially from the export, the coal industry prospect that is very highly potential this year is also being supported from coal price.
If at 2010 the price of coal recorded an increased of 39%, this year the price of major fuel for Power Plant in Asia is predicted to again increase by 16%, compared to the price in 2010 at US$98,97 per ton during this year.
Even, in the sectoral outlook report from Megacapital Indonesia that was released on 11 July 2011, the institution projects that the average price of coal would be at the level of US$115 per tons in 2011. On 2015, the commodity price would again increase by 5% to become US$ per ton.
Media Cetak Bisnis Indonesia By Firman Hidranto