Indonesian government has allowed an additional 100 MnT of coal exports for this year as it seeks to increase revenue from the energy sector, the Energy and Mineral Resources Ministry said in a statement posted on its website.
Out of the planned 100 MnT additional coal exports, Indonesian minister for Energy and Mineral Resources, Ignasius Jonan has signed approval for 25 MnT of exports.
“Out of the planned 100 MnT, there have been companies who proposed additional production, totaling 25 MnT,” said Agung Pribadi, the ministry’s spokesman in the statement. With the approval, the government can get additional foreign exchange of USD 1.5 billion and the money can go straight to the state.
“The current coal prices bode well for rising foreign exchange,” he said.
This month, the government raised the monthly coal benchmark price by 3% to USD 107.83/MT in August, from USD 104.65/MT in July, the highest since March 2012. The rally was in line with surging Australian thermal coal prices, which was also the highest in six years heated by summer demand.
The decision to allow additional exports came as Indonesia is struggling to narrow its current account deficit.
On Wednesday, Aug. 15, Indonesia’s State Statistics reported the country’s trade deficit in July at USD 2 billion, the biggest in five years and triple of what economists expected as the import value hit a record high, Reuters reported.
Indonesia aims to export 371 MnT of coal out of a planned production of 485 MnT of coal this year.
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