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Energy Ministry expects domestic coal consumption increases in 2015

JAKARTA ( – The Energy and Mineral Resources Ministry (ESDM) expects the realization of coal consumption by industrial sector recovers in 2015 after a lower-than-expected consumption in 2014.

Director General for Mineral and Coal at the Energy Ministry R. Sukhyar was quoted by Bisnis Indonesia as saying that the actual domestic consumption of coal, which was allocated under the domestic market obligation (DMO) scheme, reached 76 million tons in 2014.

Based on the Energy Ministry stipulation No 2901/K/30/MEM/2013, domestic coal consumption was targeted at 95.55 million tons. Of these, 85 percent were allocated to meet the demand of the state electricity company PT Perusahaan Listrik Negara (PLN), while 15 percent was allocated to industrial sector.

He admitted that the projected coal consumption for 2014 might have been overestimated. Sukhyar expressed his hope that the coal absorption by domestic industries will be higher in 2015.

As for 2015, the Energy Ministry decided to lower allocation of coal to domestic market under the DMO (domestic market obligation) scheme to 92 million tons. Of these, 85 percent or 78.2 million tons will be will be allocated to the state owned companies, mainly PLN, while the remaining 15 percent or 13.8 million tons will be allocated to industrial sector.

The government has revised up coal production target in 2015 to 460 million tons, higher than the target set earlier in the 2015 State Budget at 425 million tons.  Consequently, the coal export quota for 2015 will increase to 378 million tons from 360 million tons set earlier. (*)

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