REPUBLIKA.CO.ID, PALANGKARAYA -- Minister for National Development Planning and Head of the National Development Planning Board (Bappenas) Andrinof Chaniago has criticized the export of abundant volumes of coal from Kalimantan.
The commodity should be prioritized to overcome the electricity deficit in Kalimantan, the minister said at the Central Kalimantan Regional Development Planning Forum (Musrenbang) here on Monday.
"As much as 85 percent of our coal production is exported to other countries, and only 15 percent is used for the region," he pointed out.
According to data from the Regional Development Planning Board, Central Kalimantan, the largest province in Kalimantan, is known to have large reserves of precious metals, base metals, other minerals and coal.
The province has indicated coal reserves of some 1.05 billion tons with proven reserves of 40 million tons.
However, the abundant coal resources are not used optimally to meet regional needs, such as that for electrical energy. Currently, the electrification ratio in Central Kalimantan is 70 percent.
Moreover, Chaniago emphasized that priority should be given to the development of power plants in Central Kalimantan.
Most of the power supply has been directed to households in the province, and only a small part of it is supplied to the industrial sector.
Chaniago further noted that the construction of power plants in Central Kalimantan is also needed to support the development of industrial estates in the province.
"The development of power plants is more vital to support the process of industrialization. That of ports could follow," he remarked.
The minister believes that power plants with a total capacity of 1,000 megawatts could be established this year, and in 3.5 years, the province could have an industrial estate.
"If the potential of natural resources can be optimized, economic growth in Central Kalimantan could reach 8 to 9 percent," he affirmed.
In addition, the government of Central Kalimantan has been planning to construct power plants in the near future, Governor of Central Kalimantan Agustin Teras Narang said.
He added that the coal produced in Central Kalimantan will be prioritized for regional interests. The exported coal is the one with high calorie content, in accordance with the rules of the Ministry of Energy and Mineral Resources.
"The coal will be used primarily to meet domestic market obligations, with 70 percent of the production directed towards domestic needs and 30 percent towards exports," he affirmed.
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