Domestic coal consumption remains low

Coal consumption in the country, the world?s largest exporter of thermal coal, is expected to reach only 70 million tons this year, lower than the initial target of 95.55 million tons set by the Ministry of Energy and Mineral Resources, according to Gultom Guska, Director of Coal Production Division at the Directorate General of Mineral and Coal as reported by Kontan on Friday.

He explained that coal-fired power plants operated by state-owned electricity firm PT PLN are expected to consume a total of 57.4 million tons, while demand from plants operated by independent power producers to reach 19.91 million tons, and about 9.8 million tons to be taken up by the cement industry.

?As of November of this year, coal consumption by PLN and IPPs have reached 55 million tons,? he said, adding that the low demand was attributed to the slow progress in the construction of coal-fired power plants due to the huge investment requirement.

Meanwhile, Bambang Dwiyanto, a spokesman at PLN, said that demand is expected to increase going forward following the recent completion of a number of coal-fired power plants such as the 2x200 MW Pangkalan Susu plant in North Sumatra and the 190 Nagan Raya plant in Aceh. (*)