The Indonesian Coal Association claimed that Country’s coal production may fall this year for the 2nd time after gradual rise during last 30 years.
The Indonesian Coal Mining Association has indicated that country is likely to decrease its coal production by 24%. The Association is trying to build a strategy, which will provide stability to business and help to overcome from hazardous situation arose due to oversupply of coal in the global market.
“People are no longer following cash flow or increasing their EBITDA figure on income statements. Now, they are more focused on guarding business stability, where they have enough cash in their hand”, said Pandu Sjahrir, the Chairman of Indonesian Coal Mining Association.
This measure will help in strengthening the Asian coal prices in the global market, which had witnessed a downfall of 20% in last one year, Mr Sjahrir added further.
It is anticipated that coal production in Indonesia will fall to 350-400 MnT in 2015 against 458 MnT in 2014. And, this will be the 2nd time that production will fall after gradual increase during last 30 years.
The Association also declared that the domestic coal demand may rise to about 150-200 MnT in the coming 6-9 months, which will be almost double of the present requirement i.e 90 MnT. The major reason behind increase in demand is that the Indonesian government is planning a huge power syndicate by building new power stations (majority being coal operated) of about 35 GW in coming 4-5 years.
The prevailing situation may create chaos among the importers because Indonesia stands as a prime source of thermal coal export in the global market.
Indonesian Coal Production, Export & Consumption
Indonesia’s Energy & Mineral Resources Ministry has reported a downfall in coal production in 1st 3 months of 2015. The total output for Q1 of the year recorded at 97 MnT; has down by more than 20% from 124 MnT in 2014.
| Particular | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| Production | 217 | 240 | 256 | 275 | 353 | 383 | 421 | 425 |
| Export | 163 | 191 | 198 | 208 | 272 | 304 | 349 | 359 |
| Domestic Consumption |
61 | 49 | 56 | 67 | 80 | 79 | 72 | 76 |
Quantity in MnT
Source: Ministry of Energy and Mineral Resources
– Sourced
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