Jakarta Forum - Jakarta, National coal producers will set aside 68 million tons of their output to meet their domestic market obligation (DMO) in 2010, a spokesman said here on Saturday.
The head of public relations of the Association of Indonesian Coal Mining (Companies APBI), Herman Heru Suprobo, said the portion for domestic sales was bigger than last year when it totalled only around 60 million tons.
"So it is not true that we are not willing to sell in the domestic market," he said.
He said supplying the domestic market was actually more efficient than exporting as the cost of freight could reach Rp100,000 per metric ton.
Herman who is also chairman of the Chamber of Commerce and Industry`s Permanent Commission for Inter-regional Relationships however admitted that in percentage terms the volume of coal exports was bigger than for the domestic market obligation.
Of the 280 million tons of coal produced a year almost 130 million tons were for exports in 2009 while for 2010 the total volume for exports has been set at 150 million tons.
Most of Indonesia`s coal exports went to China reaching 3.5 million tons in 2009 and the figure was projected to double to 7.0 million tons this year.
"Other coal export destinations are Korea, India and Japan," he said.
Herman said mining companies were complaining about the absence of harmony in regulations or policies between central and regional administrations and this was hurting the business.
"Different govenment agencies feel they have the authority to issue mining licenses and this confusing investors," he said.
One of the regulations considered hurting the industry was Law Number 26 of 2007 on spatial allocation plans.
He said APBI at a meeting with the coordinating minister for economic affairs some time ago had proposed revising articles 30 and 31 of the draft regulation on spatial allocation plans and also Law Number 26 of 2007 as well as issuance of a government regulation in lieu of law to scrap articles 37 and 73 of the law
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