Indonesia coal production surges 14.5% in 2018

JAKARTA (RambuEnergy.com) – Indonesia’s coal production reached 528 million tons (Mt) in 2018, representing an increase of 14.5% from previous year of 461 Mt, driven by an expansion of coal production of a number of companies, the Minister for Energy and Mineral Resources data revealed on Monday (Jan. 7).

The realized production was higher than the government’s revised 2018 production target of 506.9 Mt. The initial target was 485 Mt, however, the government allowed producers to expand production in order to boost revenues for the government.

Of the 2018 production, 115 Mt was sold for the domestic market, up from 97 Mt in the previous year. Coal exports in the year reached 413 Mt, up 13.46% from 364 Mt in the previous year, the energy ministry said.

As for this year, the energy ministry has set lower indicative production target of 480 Mt.

“The plan (lower production target) is aimed at maintaining the coal price at the current level,” director general for mineral and coal at the ministry Bambang Gatot Aryono said.

“The utilization of coal in domestic market continues to increase. As many as 115 million tons of coal were sold in domestic market in 2018 and in 2017 the volume was only 97 million tons,” Minister Jonan said.

The country’s coal production continued to increase in the last few years from 456 Mt in 2015 to 456 Mt in 2016 and 461 in 2018.

Bambang Gatot Aryono said the surge of production was attributable to maiden production of coal producers in the regional areas as well as the additional production quota of 32 coal producers. (*)

 

Written by Staff Writer

Edited by Roffie Kurniawan (roffie.kurniawan@gmail.com)

 

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