Government drops coal production limit plan

The Ministry of Energy and Mineral Resources has canceled an earlier plan to limit coal production next year as production target for 2015 has been raised to 450 million tons from 420 million tons last year.

Director General of Mineral and Coal R. Sukhyar said that there?s no other way than increasing coal output as the government has set a higher non-tax revenue target from the coal sector next year. The non-tax revenue target has been increased by Rp 10 trillion.

The ministry earlier planned to limit coal production next year at around 400 million tons in a bid to help stabilize the price of the commodity.

Chairman of the Indonesian Coal Mining Association (ICMA) Bob Kamandanu has earlier called on the government for Indonesia, the world?s largest exporter of thermal coal, to become a pioneer in cutting down coal production significantly in a bid to help revive the price of the commodity which has been severely weakened by a combination of oversupply situation and weaker demand in China. (*)