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35,000 MW power plants to boost coal consumption in Indonesia

The government’s program to develop 35,000 megawatt (MW) power plants will increase domestic coal consumption, which currently stands at around 90 million tons per year.

“Indonesia’s coal production now stands at around 400 million tons per year. In the next five years, after the development of the 35,000 MW power plants is completed, Indonesia will need 200 million tons of coal per year,” said Energy and Mineral Resources Minister Sudirman Said, as quoted by Antara, during a media gathering at the ministry in Jakarta on Sunday.

With the increased demand for coal, he said, coal producers would prefer to sell to domestic markets instead of exporting, because of the lower risks.

“What we have to do now is to make the market healthier. The current sustained period of low coal prices is the right time for us to consolidate,” said Sudirman.

He said the government would take measures against illegal coal mines, ensuring that only clean coal mines operated.

“Mine owners will have to abide by existing regulations and pay close attention to environmental health. There also will be production controls, not in terms of figures but in terms of quality,” he added.

Such production restrictions, Sudirman went on, would result in better environmental health and maintain the national coal supply.

source: http://www.thejakartapost.com