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Mining Association perhapi pushes for 35,000 MW programme

The Indonesian Mining Professionals Association, or Perhapi, has announced its support for a 35,000-megawatt national electricity program, saying it will help boost the country’s coal exports by 50 percent, as quoted by The Jakarta globe.

The paper furhter reported that, Budi Santoso, head of Perhapi’s working group for mining policy, said Indonesia’s use of domestic coal has not reached its optimum level. The nation produces up to 400 million metric tons of coal for foreign markets each year, providing 100 million for domestic needs.

“The 35,000 MW electricity program will mostly rely on coal-fired power plants [PLTU] and needs 150 million metric tons [of coal] or a half of [the country's coal] exports,” Budi said.

The Perhapi official has called on the government to revise its coal-related royalty policies as its expenses in the sector are larger than its income. The state earns some Rp 8 trillion ($615 million) in royalties from state-owned electricity company PLN’s use of coal, but power subsidies have reached Rp 20 trillion, the paper said.

source: http://www.coalspot.com