Government to revise downward 2016 coal output target

The government will revise downward the country?s 2016 coal production target of 419 million tons as set in the 2015-2019 medium term plan as it is deemed to be no longer realistic given the lingering downturn in the global coal market.

Director of Coal Management and Development at the Ministry of Energy and Mineral Resources Adhi Wibowo said on Monday that most of the coal miners have also cut down their original 2016 coal output target as seen in their revised work and budget plans due to the coal price drop.

He said that the government will disclose the revised full-year coal production target once it has completed the review of the revised work and budget plans of the miners, expected in February.

Adhi, however, said that the 2016 coal production is projected to be about the same with last year?s realized output.

Indonesia, the world?s largest exporter of thermal coal, saw its coal output last year fell by 14.4 percent to 392 million tons from 458 million tons in the previous year.

Export last year dropped by 22.65 percent to 295.45 million tons from 381.97 million tons. Domestic sales volume, however, increased by 14.77 percent to 87.43 million tons from 76.18 million tons on higher demand from power plants and industries. (*)