MEMR to issue new rulings to limit coal production

The Ministry of Energy and Mineral Resources (MEMR) plans to issue two new rulings this year to limit coal production in provinces starting next year, Kontan reported on Saturday.

The paper quoted Paul Lubis, Secretary of the Directorate General of Mineral and Coal, as saying that the first ruling will be in the form of minister regulation expected to be issued this year so that the planned coal production limit per provinces could be realized next year. The regulation would also include sanctions for provinces breaching the limit.

He added that the second ruling would be ministerial decree which details the production quota of each province.

The government expects coal output next year to increase slightly to 425 million tons, from the estimated 421 million tons for this year.

Supriatna Suhala, Executive Director of the Indonesian Coal Mining Association (ICMA) said that the new regulation would not be effective in limiting the coal output as it is better to issue quota to each producing companies, instead of provinces. (*)