Indonesia produced 76.5 million tones of coal in 2000; expect to produce more in 2001

Indonesia, the world's fifth largest coal producer, produced 76.5 million tones of coal in 2000, way below the target of 84.5 million tons.

However, compared to 1999's production, it showed a 3 million ton increase.

According to the ministry of energy and mineral resources' data obtained by Petromindo.com, Indonesia exported 57.7 million tons of its production with the rest sold locally.

Top producers for 2000 are PT Adaro Indonesia, PT Kaltim Prima Coal, State owned PT Tambang Batubara Bukit Asam and BHP (PT Arutmin and PT BHP Kendilo Indonesia) with production of 15.5 million tons, 13.1 million tons, 10,7 million tons and 9.2 million tons respectively.

The data further showed the government targeted production at 87 million tons for this year.

But several analysts and observers expressed their pessimism over the target.

"Given the prevailing sociopolitical uncertainties and security problems, I am confident the target is difficult to reach," said an analyst.

Another analyst considered Indonesia was lucky enough if it could up the production to 80 million tons.

Coal producers in Kalimantan had been repeatedly hit by disturbances from locals and workers demanding land compensation or better pay.

In many cases, they blockaded production facilities, forcing companies to halt production or operate at lower capacity. It was also the reason that target output for last year was not reached.

A similar problem has recurred this year at the coalmine of PT Kaltim Prima Coal (KPC) in Sangatta, East Kalimantan, where workers have been seizing production equipment of the company since mid-February in their protests to demand higher pay. KPC was forced to cut its output by 50 percent due to the action. (Alex/Godang)