Coal output exceeds target

The government has failed in its attempts to cap the maximum coal output in the country as production is already above the upper limit set for this year, The Jakarta Post reported on Thursday.

The paper quoted Director for Coal at the Energy and Mineral Resources Ministry, Bambang Tjahjono, as saying that national coal output reached 427 million tons during the January to November period of the year. The figure is higher compared to an initial target to see a maximum production at last year?s level of 421 million tons.

Bambang said out of the total production as of November, as many as 366 million tons were sent abroad while only 61 million tons were sold in the domestic market.

?By year-end, the production will be about 458 million tons,? Bambang said in a text message on Wednesday.

The mineral and coal directorate general initially planned to slow coal production this year amid an ongoing price decline and rising environmental concerns. Indonesia is a major coal exporter although it has limited reserves. Output has increased significantly in the last few years and continues to grow despite weakening price due to global oversupply.

Coal production is expected to hit 460 million tons next year, according to Mineral and Coal Director General R. Sukhyar, as the government seeks higher royalties and other non-tax income from the sector to meet a state revenue contribution target. (*)