Indika sees flat coal sales this year

By Brigida Ernestina Elu Wea

IDX-listed integrated energy company PT Indika Energy Tbk has set coal sales volume target of 40 million tons for this year, or the same as last year?s, amid the lingering coal downturn.

President Director of Indika, M. Arsjad Rasjid said on Thursday that of the total coal sales volume target, 32 million tons will come from own production at its subsidiary PT Kideco Jaya Agung, and the remaining 8 million tons will be source from trading activity.

?For Kideco, we actually have a production capacity of up to 50 million tons per year. But this year we?ll only produce 32 million tons. For trading, we?ll maintain the same volume as last year?s,? he said.

Arsjad said that about 75 percent of the coal sales volume target will go to the export market particularly its key traditional market of China, while the remaining 25 percent allocated for the domestic market. ?We won?t be hasty in opening up new markets,? he said.

In the domestic front, he said that the company sees huge opportunity in supply coal to power plants to be completed in 2019 or 2020.

Editing by Reiner Simanjuntak