Indonesian Coal Ready for Chinese Market Domination

By : Herry Barus And Aldo Bella Putra | Tuesday, November 14 2017 - 20:00 IWST

Ilustrasi Tambang Batu Bara PT Bukit Asam Tbk
Ilustrasi Tambang Batu Bara PT Bukit Asam Tbk

INDUSTRY.co.id - Jakarta - Indonesia's coal is ready to dominate markets in China that are in need of enormous energy supplies to offset the rapid growth of the industrial sector.

"BPG seeks to encourage industrial consumers, power companies and investors in the mining and energy sectors of China to better understand the regulation and business climate of Indonesia's mining sector"  said PT Borneo Pacific Global (BPG) CEO Rendy Halim, through a written statement received by Antara at Jakarta, Tuesday.

BPG gained the confidence to represent Indonesia for the first time in the largest coal expo (CCME) in China.

CCME is the largest coal mining exhibition in China held every two years. This year, CCME took the theme, "Intelligent Manufacturing, Leading the Future" and followed nearly 400 companies from 18 countries, including the United States, Russia, and Germany.

The meeting is a place to improve relations between China and Indonesia, especially in the field of trade. Potential buyers and investors from China get an explanation regarding coal price fluctuations to guarantee transparency in the process of mining and shipping the commodities.

This is useful to increase confidence that the business between PRC and Indonesia is safe and prospective. And also support from both parties, Government of Indonesia and China, in order to strengthen comfort and security in business side.

"The response of the market is very good, they look enthusiastic to understand further coal trade in Indonesia through this exhibition we want to make the coal trade relationship between Indonesia and China to be better in every aspect," he said.

In this event, BPG displays some of Indonesia's flagship coal products, among others, BPG 47 (NAR44), BPG 42 (NAR38), and BPG 38 (NAR35). BPG products with very low levels of sulfur below 1 percent are suitable to meet the needs of consumers in China's industrial sector who are very concerned about air cleanliness. BPG coal is supplied from coal producers with mines in East Kalimantan and South Kalimantan.

This year coal exports from Indonesia to China have generated foreign exchange worth 1.68 billion US dollars or an increase compared to last year which was only 1.03 billion US dollars. However, the position of Indonesia is still below Australia which in this year export value has reached 6.51 billion US dollars.

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