M`sian minister ascertaining Indonesia`s coal supply capability

Jakarta (ANTARA News) - Malaysia`s Energy Minister Shariman bin Abu Mansur is visiting Jakarta to make sure Indonesia can meet his country`s need for coal. 

Speaking to the press after meeting Indonesian Energy and Mineral Resources Minister Purnomo Yusgiantoro here Monday, Shariman said he was visiting Indonesia to study the conditions of Indonesia`s coal industry and make sure that Malaysia`s need for coal imports would be met. Malaysia was meeting 85 percent of its need for coal with immports from Indonesia. 

"We want to make sure that our coal supplies are secure. We need 12 million tons of coal this year. The need will increase to 15 million tons next year. The need could increase further to 19 million tons after a few new power plants have become operational," he said. 

He noted Indonesia was now in the process of formulating its coal index and Malaysia wanted to know developments in this regard. "Besides, we also want to ascertain the peninsula`s (Malaysia) coal deposits," Shaziman said. 

He said the Indonesian government had given an assurance about its coal supplies to Malaysia because Indonesia still had plenty of coal reserves. 

"There is no problem with Indonesian coal supplies to Malaysia`s electricity company TNB," he added. 

He said that Indonesia and Malaysia had very good relations so that they would respect their sales-purchase agreement they had made so far. 

The Malaysian minister said TNB was prepared to review the price in its long-term contract with Indonesia but the important thing was continuity of supplies. 

"Provided there is no problem with supply , we hope we can set the price based on the prevailing market price," he added. 

This meant Malaysia would follow the coal index price the Indonesia government would issue every month. 

He said TNB was now planning to use gas for 60 percent of its power plants, coal for 30 percent and hydro and renewable energies for the remaining 10 percent.