The Directorate General of Minerals and Coal (Ditjen Minerba) of the Ministry of Energy and Mineral Resources predicts that Indonesia’s coal production by the end of the year could reach 775.17 million tons or 111% of the planned coal production target of 694 million tons.
Director of Coal Business Development at the Ministry of Energy and Mineral Resources, Lana Saria, said that by November 2023, coal production would have reached 710.75 million tons. Where, the assumption is that average coal production reaches 64.6 million tons.
“By the end of the year, the target is to reach 775.17 million tons. This is 111% of what was targeted this year,” explained Lana in a discussion on the Strategic Role of Coal in the Energy Transition, at the Arya Duta Hotel, Friday (15/12/2023).
Lana said that high coal production is closely related to the trend in coal prices which tend to decrease, as well as coal consumption levels which are increasing after Covid-19.
“Even though the price trend is decreasing, it is not too low. However, it could be said that economic development in Indonesia and the world has increased after Covid-19, so it requires more energy so that there is an increase in production,” said Lana.
Lana said that the positive impact of high coal production is that royalties have increased. As of December 11 2023, the coal sector has contributed royalties of up to IDR 94.599 trillion, higher than the 2023 PNBP target of IDR 84.268 trillion.
“Apart from these royalties there is other income, including Lupsum Payments, smelter administrative fines, DMO and applications for account corrections,” said Lana.
