The Indonesian government has stated that the country’s coal export is expected to weaken this year due to the Coronavirus (Covid-19) pandemic.
According to a statement by Agung Pribadi, spokesman at Indonesia’s Ministry of Energy and Mineral Resources, the country’s export volume in the first five-month period of this year has only reached 175.15 million tons (MnT), worth about USD 7.77 billion, while full-year export volume was targeted at 435 MnT.
Currently Indonesia is also exploring to export its coal to several other developing countries.
“We are exploring coal export market opportunities to other developing countries, such as Vietnam, Bangladesh and Pakistan. In addition, we will increase the efficiency of the coal supply chain of the coal importer country and conduct direct contracts or direct shipping to the importing countries”, Agung said.
Meanwhile, realized coal domestic market obligation (DMO) volume as per end of May reached 53.55 MnT, compared to full-year target of 155 MnT, he said.
The ministry previously said that the realized DMO volume this year was likely to reach only 141 MnT due to the pandemic. Meanwhile, the Indonesia Coal Mining Association (ICMA) said that the realized DMO this year would only reach 100 MnT due to declining power consumption which prompted state electricity firm PT PLN to reduce coal demand.
Agung also said that the country’s coal production as per end of May reached 228 MnT, compared to the full-year target of 550 MnT. He said that the five-month production was still in line with the target, representing 42 percent of the full-year output target of 550 MnT.
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