Despite paltry first-half coal output, RI may exceed full-year target
Thursday, August 10 2017 - 01:14 AM WIB
The country?s coal production in the first semester of this year reached 139 million tons, or only about 29 percent of the full-year target of 477 million tons.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono, however, is optimistic that the full-year target set by the government would be achieved, and may even slightly exceeded.
He pointed out that the first-half coal production data only accounted for output reported by major coal miners holding the so-called coal contracts of work (or PKP2B). He said that the ministry has yet to receive from provincial administrations the output data of smaller miners holding the IUP mining business licenses.
?The (production) trend in the second semester usually accelerates, while in the early parts of the year, such as in January and February, they (the coal miners) usually withheld production,? Bambang said. Some coal miners have also previously reported of slower production due to the unusual heavy rainfall.
Bambang added that some PKP2B coal miners have asked for additional output quota this year. Coal miners run production activity based on their respective annual work and budget program approved by the directorate general.
Some coal miners in the country, the world?s largest thermal coal exporter, are ramping up production to benefit from the current recovery in the price of the commodity.
Bambang added that many IUP coal miners are expected to start production in the second semester of this year. He said that IUP miners are expected to account for between 125 million-130 million tons of the full-year coal production target.
Elsewhere, Bambang said in a statement that state revenue from the mineral and coal mining sector in the first semester of this year reached Rp 18.27 trillion, or 56 percent of the full-year target of Rp 32.4 trillion.
Meanwhile, realized investment in the mineral and coal mining sector during the first half reached only $2.5 billion, or 36 percent of the full-year target of $6.9 billion. He expected investment to pick in the second semester especially if gold and copper giant PT Freeport Indonesia concluded ongoing negotiations with the government to end dispute over new regulations introduced earlier this year.
Editing by Reiner Simanjuntak