Indonesia’s coal production is expected to reach 694.5 million tonnes (mnt) in 2023, according to an official of the Ministry of Energy and Mineral Resources (ESDM).
Lana Saria, Minister of Coal Business Development, Ministry of Energy and Mines of Indonesia, said that the coal production target for 2023 is higher than 663 mnt in 2022, according to a report from local media, Kontan.
According to data from the ESDM, the country’s coal output for 2022 has already surpassed the target to reach 684.87 mnt.
ESDM said it has received work plans and budgets (RKAB) for 2023 from 749 Indonesian miners, of which 486 companies have proposed to increase production and the remaining 263 miners to reduce production.
“Of the 694.5 mnt of coal production target for 2023, 517.7 mnt will be planned for the export market and 176.8 mnt for domestic supply,” Saria further said.
“Indonesia’s coal production is expected to be affected by multiple factors this year,” the official added. It includes elevated HBA prices, Domestic Market Obligations (DMOs) and supply to local cement and fertiliser industries. In addition, global demand, the Russian-Ukrainian conflict and weather conditions will play a vital part in the country’s coal production.
According to the RKAB submitted by Indonesian coal companies, Bumi Resources planned to increase production to 81.35 mnt this year.
Coal producer, GEMS, expected its production to increase by 5% in 2023 from the level of 2022, to about 39 mnt, lower than its target of 40 mnt.
“With the relaxation of China’s epidemic measures, industrial rebound would drive energy demand and thus benefit Indonesia’s coal exports,” GEMS’ Director Bonifasius said. The company expressed confidence to increase coal production this year.
Note: This article has been exchanged under the article exchange agreement between CoalMint and Sxcoal.
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