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Auctioneer flooded with vehicles abandoned by coal miners
An auctioneer in Balikpapan, East Kalimantan, has been flooded with vehicles abandoned by coal miners that have been forced to reduce or cease operations following weakening coal prices
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n auctioneer in Balikpapan, East Kalimantan, has been flooded with vehicles abandoned by coal miners that have been forced to reduce or cease operations following weakening coal prices.
"We received 4,292 vehicles to be auctioned early this year," the person in charge at Ibid Auctioneer, Supriadi, said on Tuesday.
The vehicles include four-wheel-drive double cabin pickups, minibuses and trucks, most of them from vehicle rental companies that cater to coal miners, who have been forced to reduce or cease their operations.
Some of the vehicles also come from leasing or financing companies that repossessed the vehicles from leasees that are no longer able to pay the installments.
Ibid so far has sold 965 vehicles.
In the first three months of 2015, the auctioneer received another 650 vehicles and sold 260 of them.
Supriadi said most buyers were oil palm plantations and forest concessionaires.
"We are also offering vehicles not sold here at Ibid branches in Surabaya, Serang, Medan and Palembang," he said.
"In 2013, we auctioned 2,012 vehicles and managed to sell 422 of them."
Double-cabin pickups sold for between Rp 30 million (US$2,294) and Rp 150 million while brand new ones could fetch between Rp 190 million and Rp 200 million.
The price of coal is currently set by the Energy and Mineral Resources Ministry at $62.92 per ton. The price reached its peak at $180 per ton in 2011 before weakening to $80 per ton in February 2014. (nvn)(++++)
