INDONESIA AS NEW EMERGING MARKET

Tuesday, June 13, 2006

INDONESIA PLANT TO DEVELOP LIQUID COAL COOPERATE WITH JAPAN

Jakarta (ANTARA News): The Indonesian government was sounding out the possibility of the liquid coal development with the Japanese Investor, J-Coal, the ESDM Nenny Sri Utami headword of the Body of the Department's Research And Development.

According to her, ended the liquid opening of the coal seminar in Jakarta, on Tuesday, the government will ask Earth Resource co-operated with J-Coal in the development of liquid coal that will be made the synthetic oil.

The "location that possibly was built was Berau, East Kalimantan, Bangko, South Sumatra or Muriah, South Kalimantan," he said.

Beforehand, Earth Resource will co-operate with the South African company, South Africa Synthetic Oil Liquid (SASOL) developed the liquefaction of the coal.

"However, this co-operation was postponed because SASOL was concentrating on developing liquid coal in Qatar, Nigeria, and China," said Nenny.

Nenny added, the liquefaction capacity of coal was with J-Coal sounded out 3 thousand tonne per the day and it was hoped could produce 12 thousand barrel synthetic oil per the day.

Planned, the factory could begin to be built in 2012 and 2015 has begun to be productive.

According to him, was based on the estimate, thought development investment of liquid coal was 2,4 billion US dollar for produced 55 thousand barrel synthetic oil per the day or 23-29 US dollar per barrel. The coal that was needed reached 12 thousand tonne per the day.

In the meantime, the Director General of the Mineral, coal, and the Department's Geothermal of ESDM Simon F Sembiring added, the government was still studying giving of the incentive for the development of liquid coal. His incentive could take the form of the reduction in royalties or the import duty tax for the owner of the mine and the liquid coal developer. Giving of the incentive was enabled in accordance with President Instruction No. 2 in 2006 about the provisions and the Utilisation of coal that was diluted as the Other Fuel dated January 25 2006.

This President Instruction mentioned Minister ESDM was assigned to prepare the incentive for the development of liquid coal and afterwards proposed to the Department of Finance. Simon also added, the coal reserve in Indonesia very abundant that is reached 58 billion tonne.

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