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Saturday, 04 January 14
THE INDONESIAN GOVERNMENT TO DOWNSIZE ITS COAL PRODUCTION TARGET TO 400 MMT THIS YEAR


COALspot.com: Indonesia to downsize its coal production target to 400 million tons in 2014, lower than the production in 2013, which stood at 421 million tons, as quoted by Antara News.

"We have set a production target at 400 million tons, which is lower than the production in 2013, as we want to change our paradigm that an increase in revenue is derived from increasing production," stated Syukhtar, the director general for mineral and coal affairs, here on Friday, Antara said in its latest report.

The news further reported, “He explained that the government was keen to change its outlook that an increase in non-tax state revenues should not always come from increased production”.

For this purpose, the Ministry of Energy and Mineral Resources also plans to increase its supervision on the coal and mineral sector to ensure greater accuracy in reporting of production data.  "We will streamline and improve the supervision system," he remarked, Antara says.

The deputy chairman of the Indonesian Coal Mining Association, Herman Kasih forecasted that, the country’s coal production could hit 450 million tons next year. the Indonesian coal production will keep growing next year as the country’s miners increase their output to tap expected higher demand, as quoted by the Jakarta post early this week.

In the meantime, Bob Kamandanu, Chairman of the Indonesian coal mining association, urged all coal mining companies, particularly members of ICMA, to rein-in their coal out in 2014 to help improve coal prices in an oversupplied market, according to a latest interview published by Coal Asia recently.

According to Antara, the director general revealed that during 2013, the domestic coal consumption reached 72 million tons. The coal was used for generating electricity and smelting operations, among others.

This year, in 2014, the domestic coal consumption is forecast to reach 95.5 million tons.



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