Govt sets lower coal production target of 409m tons next year

By Tri Subhki R

The government has set a lower coal production target of 409 million tons in 2017, compared to 419 million tons this year.

"We set total coal production target as much as 409 million tons in 2017 or lower than 419 million tons this year," Director General of Mineral and Coal Bambang Gatot Ariyono said on the sidelines of Coaltrans Conference in Bali on Monday.

Bambang said the government will maintain the production target for this year, and is not considering to revise down the target despite the lingering low price environment.

Bambang said big mining companies still produce coal at the same level, but smaller miners, particularly IUP holders, have been heavily affected by the weak export market demand.

Editing by Reiner Simanjuntak