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Indonesia’s 2018 realized coal production far higher than target

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JAKARTA (RambuEnergy.com) – The Indonesian Energy and Mineral Resources Ministry has revealed that the country’s realized coal production in 2018 has reached 557 million tons (Mt), far higher than its early initial figure of 528 Mt, or 20.8% from 2017’s production of 461 Mt.

Director General for Mineral and Coal at the Energy and Mineral Resources Ministry Bambang Gatot Ariyono said during a hearing with the Parliament Commission VII on Monday the increase was driven by higher-than-expected coal production of the holders of Coal Business Permits (IUPs), whose permits were issued by regional governments.

The national coal production was 14.8 percent above target of 485 Mt. Of the full year production, 442 Mt were exported, up from 364 Mt in previous year, the data released by the energy ministry shows.

In 2018, coal sold to domestic market under the domestic market obligation (DMO) scheme reached 115 Mt, increased 18.56% from previous year of 97 Mt.

The IUP holders contributed around 30% of the national coal productions, while major coal producers which secured coal Contracts of Works (CoWs) from the central government contributed the remaining 70% of the national coal production.

As for this year, the energy ministry caps coal production target at 489.13 Mt, lower than coal producers proposed of 708.4 Mt. The target is 12.3% lower than last year’s realized coal production.

Coal producers that are failed to meet domestic market obligation scheme will only be allowed to produce four times than their realized DMO in previous year.

Under the government DMO regulation, the coal producers are required to sell 25% or their production to domestic market.

Indonesia is the largest thermal coal exporter in  the world. (*)

Written by Staff Writer
Edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

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