INDIA HOPING RI NOT TO STOP EXPORTING COAL

Jakarta, Jan 22 (ANTARA) - India is hoping Indonesia will not stop exporting coal as an Indonesian institution intends to recoomend, Indian Ambassador to Indonesia Biren Nanda said here on Friday.

Nanda made the statement in response to reports that Indonesia's National Energy Board (DEN) is planning to recommend the gradual cessation of Indonesia's coal exports in order to enhance the country`s energy resilience.

He said India was big coal exporter as well as importer and its need for coal was expected to rise to 50 million tons per year in the future.

"I believe Indonesia has many coal reserves so that its coal exports to India and other countries need not disturb its coal mining industry's ability to meet domestic needs," Nanda said in an interview with Antara.

During a hearing with the House of Reoresentatives (DPR)'s Commission VII last Wednesday (Jan 20), a DEN member said the board was formulating a recommendation to the government to gradually stop the export of coal.

The DEN member, Rinaldi Dalimi, said coal should be saved as an energy reserve to meet future needs.

Rinaldi argued that keeping coal as a future energy source would give maximum benefit to Indonesia since the product`s price was expected to rise in the years ahead. In addition, he said, Indonesia's present coal production of 250 million tonnes per year would only reach its break-even point in the next 20 to 30 years.

Meanwhile, chairman of the Indonesian Coal Exporters Association (APBI), Bob Kamandau, said the assocation did support DEN's idea to gradually stop coal exports.

He said a halt in coal exports would have a negative impact on state revenue and the people's economy.

"Coal exports contribute Rp27 trillion per year to the state coffers. Stopping coal exports can cause financial and material losses, increased unemployment and create the risk of investors leaving Indonesia," he said.

He added Indonesia produces 250 million tonnes of coal per year while domestic consumption only stands at 60 million-70 million tonnes per year.

"If the country needs 250 million tonnes of coal per year, we will be glad to give priority to the national need," APBI's chief, Bob Kamandanu, said.