Government sees lower coal output next year, but still higher than target

Petromindo|Lucky

Indonesia?s coal production next year is projected to slightly decline to 446.6 million tons from the estimated 450 million tons for this year, but will still be 10 percent higher than the government?s target, Bisnis Indonesia reported on Monday.

The paper quoted Director for Coal Management and Development at the Ministry of Energy and Mineral Resources, Sri Rahardjo as saying that the 2018 coal projection was based on the work and budget plan of coal miners holding the coal contract of work (PKP2B), which accounts for about 80 percent of the country?s coal production, submitted to the ministry.

He said that the 2018 coal projection is higher than the 406 million tons target set under the government 2015-2019 national medium term development plan (or RPJM) as the government is facing difficulties to curb production as increasing number of miners enter production stage. ?Next year, coal production may be 10 percent higher than the target (set in the RPJM),? he said.

He said that coal production estimate for this year of 450 million tons, albeit slightly lower than last year?s 456 million tons, is also higher than the 413 million tons target set in the RPJM.

Sri said that coal production for this year has been slightly curtailed due to heavier and prolonged rainy season, which hampered production activities at some coal mines.

The government plans to control coal production in the country by assigning production quota to each provinces, but some said that the proposed policy will not be effective particularly as many IUP mining business license miners enter production stage, and as some miners are ramping up output amid the current coal price recovery to compensate for losses suffered in the previous years when price of the commodity tumbled. (*)