Country targets 663 mnt of coal production in 2022, in which 498 mnt will be for exports
Indonesia’s realization of coal for the domestic market, as per government data, touched 133 million tonnes (mnt) or almost 97% of the full year’s target of 137.50 mnt, mostly for PLN. The remaining coal output went into export sales, informed Adianto Simamora, Chief Editor, CoalMetal Asia Magazine, while addressing the Indonesia Coal Outlook Conference today. The event is being held in Jakarta over 18-19 May, 2022.
He also said January 2022 was a shocking month not only for the country’s coal industry but also for countries in the Asia Pacific, after Indonesia, the world’s largest thermal coal exporter, decided for the first time in its history to totally stop international coal sales.
The one-month ban impacted all players in the country’s coal industry, including coal miners who fulfilled their domestic market obligations (DMO) requirements.
Under the DMO policy, the country’s coal miners are required to allocate at least 25% of their annual output for the domestic market, including the power sector.
With the sharp rise in Indonesia’s coal demand, the government continues to emphasize a higher share of domestic market obligation for coal miners in the country, Endah Sulastri, Senior Associate ADCO Law was heard as saying.
Indonesia produced 614 mnt of coal in 2021, representing 98.20% of the government’s full year target of 625 mnt.
Indian exports to increase
With India’s rising coal demand, thermal coal imports are likely to rise by 20-30 mn t in the next financial year FY’23 (Apr-March), CoalMint assessment showed.
In FY’22, India’s thermal coal imports stood at 134 mnt.
The ongoing energy crisis in India makes an opportunity for Indonesian coal miners to increase exports to the country. Domestic units have been importing higher volumes of low-to-mid CV coal grades for blending purposes with local coal, Mr. Haryanto Damanik, Director, PT Manambang Muara Enim was heard as saying.
Outlook
In 2022, Indonesia is targeting coal production of 663 mnt of which around 498 mnt will be allocated for the global coal market, Simamora said.
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