Government to review annual coal production policy

Petromindo

The government plans to review its annual coal production policy as set in the 2015-2019 National Medium Term Development Plan (or also known as RPJM) as coal miners have repeatedly exceeded the output target.

Bisnis Indonesia quoted Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono as saying that the ministry will discuss the coal production target for this year with the National Development Planning Agency (Bappenas), which sets the RPJM.

He pointed out that coal miners in the country have proposed a combined coal production target for this year of 489 million tons, higher than the 413 million tons target set in the RPJM.

Bambang explained that coal miners are enticed to boost production this year in the wake of recent recovery in the coal price to help reduce losses suffered in the previous years. He also said that plenty of miners holding the so-called IUP mining business permits are set to start production this year. ?The IUP miners which will enter production soon cannot be suspended all. This is one of the considerations (to review the annual coal production policy target) in addition to higher revenue for the state,? he said.

Meanwhile, Deputy Director of the Indonesian Coal Mining Association (ICMA) Hendra Sinadia said that the higher production target is line with renewed optimism among coal miners in the country in the wake of coal price recovery in recent months.

He also suggested that it is high time for the RPJM to be revised. (*)