The government is preparing several scenarios in controlling production of coal in Indonesia

TRIBUNNEWS.COM   April 3,2014 reported that the Ministry of Energy and Mineral Resources ( MEMR ) has prepared two scenarios stated policy of limiting the national coal production . The plan , this policy will be set in the ministerial regulations and will be enforced starting in 2015 .

The first scenario is prepared , the government allows a national coal production increased         by 1 % per year with a target of increasing the use of coal in the country , nor the domestic market obligation ( DMO ) at the same time decreasing the volume of exports .

Then , the second scenario is : coal production is not allowed to rise compared with the previous year , while the DMO continues to increase every year . To smooth this policy , the Ministry of Energy and Mineral Resources has been consolidated with the local government .

Understandably , during this , the central government is only authorized in the determination of the volume of production for companies holding concession of Coal  Contract  of  Work (CCoW/ PKP2B ) contained in each work plan and budget ( RKAB ) each company per year .

As for RKAB mining license ( IUP ) the authority of the respective local governments . ” We have been meeting with district / city and province in Palembang , South Sumatra , and Balikpapan , East Kalimantan , ” said a source in the Ministry of Energy and Mineral Resources KONTAN who participated in the discussion , Wednesday ( 2/4 ) .

From the results of the meeting , conical two scenarios will be assessed the Ministry of Energy and Mineral Resources to set restrictions on coal production . After coordination with the local government , the next stage , the government will ask for input from the business community to set a scenario that will be selected in a policy of limiting the production of coal .

At the end of the process , the policy will be formulated in the draft regulations that the Minister of Energy and Mineral Resources will be published later this year . ” We will also set the DMO policy to ban the transfer of quotas for the company , ” he said .

Can Not Stagnant

Ekawahyu Kasih , Secretary General of the Association of Energy Suppliers and Coal Indonesia     ( Aspebindo ) , said the scenario as much as 1 % increase in production would be more acceptable than the ban employers increased production . “Businesses have to grow it , not be stagnant , ” he said .

Ekawahyu added , the government should also firmly in regulating the export of coal . Therefore , the policy of limiting the increase of production , domestic demand growth would be more rapidly so that the export restrictions must also be done .

Jeffrey Mulyono, President Director of   PT. Pesona  Khatulistiwa  Nusantara, said it did not question the existence of the policy of limiting coal production plans. According to him, the national coal policy should be made based on the roadmap of the National Energy Policy (KEN), so it would be more optimal utilization of coal.

Jeffrey added , setting production quotas coal per province is mandated by Article 5 of Law No. 4 of 2009 on Mineral and Coal that so far the government has not followed .

” The government should also move back to coal exploration activities to increase coal reserve and guarantee energy security , ” he said .





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