Domestic coal demand in Indonesia may decline due to prolonged Coronavirus (Covid-19) pandemic in the second quarter of this year.
Executive Director of the Indonesia Coal Mining Association (ICMA) Hendra Sinadia said that while the Covid-19 outbreak has yet to affect domestic coal demand during the first quarter, demand in the second quarter could decline.
“In the second quarter, coal demand may decline”, he said on Tuesday.
He, however, said that the country’s coal miners are committed to fulfill the domestic market obligation (DMO) quota this year of 155 million tons (MnT). Under existing regulation, coal miners in the country are required to allocate at least 25 percent of their output this year for domestic market including power plants and other industries.
The country’s Ministry of Energy and Mineral Resources Spokesman Agung Pribadi said that domestic coal demand is expected to decline in the second quarter of this year.
“If the Covid-19 pandemic continues, domestic coal demand is expected to decline by 5 percent”, he said.
The ministry has set the country’s coal production target for this year at 550 MnT.
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