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Thursday, 02 September 10
PLN ASKED TO USE LOCAL COAL


Tempo Interactive reportd that, the Indonesian Mining Association Executive Director, Priyo Pribadi, has called on the state-run electricity company, PT PLN to use local coal, especially given that there is an excess in local coal supply following the domestic market obligation on coal.

Priyo was responding to PLN CEO, Dahlan Iskan, who announced he was going to import 9 million tons of coal next year to meet the fuel requirement for his steam-generated power plant, saying he would have to import if there was not enough local supply available (Koran Tempo, August 27).

Instead of importing, he thought PLN should position the coal mines closer to the power plants to save production costs. As example, he cited PT Bukit Asam’s coal mine which is located close to the Suralaya power plant. Bukit Asam will later concentrate only on supplying coal to the Suralaya Power Plant.

Priyo also urged PLN to make a long-term contract with coal companies so that it does not have any problems with coal supplies in the future. So far, he said, PLN has repeatedly held tenders for short-term supply contracts.

Priyo said that collaborating coal companies must also have clear legal status and be capable of supply up to 50.000 tons of coal and should have reserves. “PLN often uses illegal mining companies to reduce the cost,” he said.

He said businessmen were disappointed with PLN, which chose unreliable companies in the coal procurement tenders. “The coal procurement tender system is not transparent enough,” he said.

PLN is also called on to coordinate with the Indonesian Coal Mining Association to check whether a coal company is fit to win a tender.
Source: Tempo Interactive (By: Danang Wibowo)



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