Indonesia’s coal production by the end of Sep’20 has totaled to 410.4 mn t, which is 75.08% of the country’s full-year coal production target of 550 mn t, according to the Ministry of Energy and Mineral Resources (ESDM) data released on Wednesday.
The country’s coal exports in the first nine months this year reached 219.8 mn t, or 56% of the full-year target of 395 mn t.
Meanwhile, realized domestic market obligation (DMO) by September end reached 86.1 mn t or 55.5% of the full-year DMO target of 155 mn t.
The Indonesia Coal Mining Association (ICMA) has called on the country’s coal miners to cut down production this year to help ease pressure on the price of the commodity amid oversupply and COVID-led weak demand.
In August, Irwandy Arif, Special Staff of ESDM said that the government of Indonesia may approve proposals made by coal miners to have upward revision of their initial 2020 coal production plans as long as the miners have already secured sales contracts for the extra output.
Irwandy argued that such increase in coal production would not undermine coal prices as the miners have already secured buyers.
The government is currently reviewing the 2020 work plan and budget of coal miners, some of which have proposed upward revision in this year’s initial coal production target.
Irwandy earlier said that there are 30 coal mining companies that have submitted proposal to the Ministry of Energy and Mineral Resources to revise upward their coal production target this year.
The government has initially set the country’s coal production target this year at 550 million tonne. However, some market participants had suggested the government to lower the coal production to help prevent coal price from declining further amid oversupply and weak demand situation.
Leave a Reply