Government expects coal production at 477 million tons in 2017

By Tri Subhki R

Petromindo|Lucky

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said on Wednesday the country?s total coal production this year is estimated to reach 477 million tons, higher than last year?s 456 million tons.

"The total production is 477 million tons this year. For next year, the number maybe a bit less than this year," Bambang Gatot said at a press conference.

When asked about the government?s earlier plan to cap production at 400 million tons, Bambang stated that it is not easy to forbid mining permit (IUP) holders from producing coal after these companies complete their feasibility and construction stages.

"Meanwhile, we are also required to generate revenue for the state from coal sector," he said.

Bambang stated that the state non-tax revenue including royalty from the mining sector reached more than Rp39 trillion, or above the target of Rp32 trillion set in the 2017 state budget, amid recovery in the price of coal.

Editing by Reiner Simanjuntak