ICMA calls government to revise 2015-2019 coal development plan

The Indonesia Coal Mining Association (ICMA) called on the government to revise the current 2015-2019 National Medium Term Development Plan (or RPJM) for the coal sector due to the slow progress in domestic power plant development program, Investor Daily reported on Monday.

The paper quoted Executive Director of ICMA, Hendra Sinadia as saying that the 2015-2019 RPJM, which envisages growing domestic coal demand and declining export, projects domestic market obligation (DMO) of coal to more than double to 240 million tons by 2019 from 102 million tons in 2015.

He said that the jump in the DMO volume (coal production allocated for domestic market) is based on the assumption that the government?s program to develop a combined 35,000 MW power plants, much of which to be fueled by coal, can been completed in 2019.

But Hendra said that as the latest estimate suggests only about 19,700 MW of power plants will be completed by 2019, the RPJM must be revised as the original DMO projection is clearly no longer attainable.

He said that the largest domestic market for coal is the power plant sector. (*)