coal exports in 2010 are predicted to rise

Government policies that require all employers to supply coal for domestic demand was not expected to disrupt the activities of mining exports was. In fact, the value of coal exports in 2010 are predicted to rise in line with increased production of these minerals. All the employers have no objection and is ready for duty or DMO domestic supply of coal. Moreover, the implementation of coal DMO is not too tight because it will follow the development of the coal business conditions. According to Sahala, implementation of policies for coal DMO does not interfere with export performance because the production capacity has increased. For this year, domestic demand for coal is predicted only by 75 tons, while production capacity reached 280 million tons. Therefore, the excess production that is not absorbed by the domestic will be exported to several countries. So far Indonesian coal from many exported to Japan, China, Korea, and India. With the implementation of the Free Trade Agreement (FTA) ASEAN-China, the volume of coal exports to China is expected to rise significantly because the tariff barriers have long been abolished. Sahala added, businessmen do not object to the obligation provided that the domestic supply of coal prices to domestic prices following the international index. "Thus, coal commodity prices in the domestic market with international markets. The government has to understand this so that no coal prices with special treatment," he said.

Associated with the need for PLN's coal, the price of coal sold to electricity companies that country equal to the price in the market because it includes the sale of business transactions. If the ability of PLN is insufficient funding to purchase coal at market prices, the lack of funding will be fulfilled by the government. Coal PT Bukit Asam, Tbk, PT BA or coal sales projected for next year will increase by 20 percent or 15 million tons from this year's target of 13.2 million tons. “The market will go up. If the price could rise as the year 2008 our initial revenue will peak," said President Director of PT BA Sukrisno after a press conference on the sidelines of Investor Summit, Wednesday (2 / 12) at the Ritz-Carlton Pacific Place, Jakarta. In the third quarter of 2009, the company registered net profit of Rp 2.23 trillion or an increase of 68.6 percent compared to the same period last year. Coal production also rose to reach 11.1 percent or 8.59 million tons compared to the previous year. The volume of sales to third quarter of 2009 recorded 8.73 million tons with revenues Rp 6.55 trillion. In addition, he also predicted that until the end of this year, PT BA will earn net income to over Rp 9 trillion. This figure is obtained by assuming the price of coal at a price equal to the third quarter of 2009 of $ 36.93 U.S. dollars per ton. The composition of sales of coal for export and domestic in the period January-September 2009 consisting of 70 percent domestic and 30 percent of exports In addition, next year, PT BA also will continue the acquisition of mining contracts with 8 total budgeted investment of Rp 2 trillion or an increase compared to previous investments reached Rp 1.5 trillion. we hope there are one or two companies that could be obtained. In this little choked up because some companies do not fit the criteria.

Source: Kompas.com