JAKARTA: The coal production in Indonesia is predicted to keep rising to 405 million tons in 2025 from current level of 260 million tons, following the increase of coal demand. Operational and Techniques Director of PT Tambang Batu Bara Bukit Asam Tbk Milawarman said that the current domestic coal production is 260 million tons, of which 70 million tons is used to fulfill the domestic demand and the remaining of 190 million tons is exported to Asian regions.The domestic consumption keeps increasing to reach 200 million tons, he said amid the business gathering Challenges and Opportunities in Indonesian mining sector.Milawarman said the domestic consumption of coal is mostly allocated to supply steam power plant (PLTU), since the high needs in cement plant, liquefaction, steel and pulp, upgrading brown coal and small industry.The business potency of coal mining in Indonesia is still largely open as it can be seen from demand growth particularly for the needs of steam power plant. Then, it is also used for the needs of cement, pulp and paper industry.Milawarman admitted that there are still some challenges in the mining investment that must be addressed, especially related to regulatory and permission process. Considering the business in mining sector requires substantial investment, thus the land acquisition should be absolutely given to every businessman in the mining sector."The land acquisition is the most important issue. If you already hold the mining permit, then you are not necessarily 100% able to execute the land since it is often overlapping with forestry, environment and spatial planning sectors. "In addition, infrastructure problems, especially for land mining infrastructure such as roads and railway to transport coal, may also inhibit the investment in this sector. "Mining industry is also elevated by uncertainty mining permit since there is regional autonomy which brings serious problem. Each region has different permission, "he said.Milawarman said that Indonesia has rich coal resources which reaching to 105 billion tons. Meanwhile, coal supply in Indonesia is about 3% of the total world supply or about 22 billion tons which can be explored.PTBA has a total of coal resources reached to 7.3 billion tons, while run-of-mine coal was only 2 billion tons. The production of PTBA is now standing at 13 million tons and it is expected to reach to 50 million tons in the next 2 or 3 months, he said. (wiw/t03)

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