JAKARTA: Companies under Coal Mining Concession Agreement (PKP2B) postpone its output in Indonesia in the course of awaiting for a feasibility study of economies of scale. Executive Director of Indonesian Coal Mining Association (APBI) Supriatna Suhala stated there are several factors that led to the postponement, even though the agreements have been signed since the 1990s. They are, first, most PKP2B have low rank coal reserve with minimum buyers. Indonesia biggest coal consumer PT Perusahaan Listrik Negara (Persero) used to order medium quality coal and only recently it consumes low quality coal. Second is some PKP2B are located far from port so investors have to build highway. “PKP2B must not use public road to transport coal, different with mining right. Mostly choose to delay production and wait until it reaches economies of scale.” Based on Ministry of Energy and Mineral Resources’ data per October 2011, since first PKP2B (1981-1990), second (1994) and third (1997-2000), there are 141 PKP2Bs where 65 were terminated and the rest are still active. From 76 PKP2B, 50 are still producing, 12 are under construction stage, 9 under feasibility studies and 5 under exploration stage. The nine under study PKP2Bs are from the third generation. They are Abadi Batubara Cemerlang in Riau (1999), Bara Pramulya Abadi in Kabupaten Tabalong, South Kalimantan (1997), Kalteng Coal in Murung Raya Municipal, Central Kalimantan (1998), Maruwai Coal in Central Kalimantan and East Kalimantan (1998). Next, Sarwa Sembada Karya Bumi in Jambi (1999), Selo Argodedali in South Sumatera and Lampung (1997), Selo Argokencono Sakti in South Sumatera (1999), Sumber Barito Coal in Central Kalimantan and East Kalimantan (1999), plus Yamabhumi Palaka in Sintang Municipal, West Kalimantan (1997). Five under exploration are Batubara Selaras Sapta in Pasir Municipal, East Kalimantan (1997), Bumi Laksana Perkasa in Kutai Timur Municipal, East Kalimantan (1997), Juloi Coal in Murung Raya Municipal, Central Kalimantan (2000), Pari Coal in Central Kalimantan and East Kalimantan (1998), plus Ratah Coal in Central Kalimantan dan East Kalimantan (2000). (T05/msw)

03 Januari 2012

JAKARTA: Fifteen coal mining license holders have yet to start production since the 1990s, data from the Directorate General of Mineral and Coal at the Energy and Mineral Resources Ministry show.

As of October 2011, the government had issued 141 the so-called PKP2B licenses ranging from first to third generation. Of these, 65 have been terminated while the other 76 remain active.

However, 15 of the 76 licenses, mostly second generation licenses issued in 1994 and third generation ones given between 1997-2000, haven’t started production yet. Nine of them are still doing feasibility study and five are still in exploration stage.

The PKP2B license holder that are in feasibility study include Riau-based PT Abadi Batubara Cemerlang (license issued in 1999), Batu Pramulya Abadi in Tabalong Regency, South Kalimantan (1997), Kalteng Coal in Murung Raya Regency, Central Kalimantan (1998), and Maruwai Coal in Central Kalimantan and East Kalimantan (1998).

Meanwhile, five PKP2B-holders in exploration are Batubara Selaras Sapta in Pasir regency, East Kalimantan (license issued in 1997), Bumi Laksana Perkasa in East Kutai Regency, East Kalimantan (1997), Juloi Coal in Murung Raya Regency, Central Kalimantan (2000), Pari Coal in Central Kalimantan and East Kalimantan (1998), and Ratah Coal in Central Kalimantan and East Kalimantan (2000).

Executive Director of Indonesian Coal Mining Association (ICMA) Supriatna Sahala said there were several factors behind this problem. Firstly, most of these companies have low-rank coal, which didn't have buyers until recently.

PT Perusahaan Listrik Negara (Persero), Indonesia’s largest coal buyer, preferred using medium-rank coal. However, it started utilizing low-rank coal recently, he added.

Secondly, several PKP2B licenses were far from port and had to invest to build roads. On a separate issue of mining licenses leading to conflicts, Energy and Mineral Resources Minister Jero Wacik had asked regents to stop issuing local mining licenses called IUP.

Principally, the central government could not ban regents from issuing new licenses, he said. Since the Mineral and Coal Law came into effect, 9,662 IUP have been issued, of which only 3,778 licenses are "clean and clear" or have no overlapping claims. (t01/ags)