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Indonesia Plans to Reduce Coal Production in 2020 by 10%

Coal News - Published on Fri, 17 Jan 2020

Image Source: jlt.com
Indonesia’s Energy and Mineral Resources Minister Mr Arifin Tasrif announced that Indonesia has ordered coal miners to slash output after record production and exports from the world’s largest shipper last year weighed on prices and state revenue. He told ‘The government has set the production target at 550 million tonnes in 2020, 9.8% below the 610 million tonnes in 2019. Domestic consumption of coal is seen jumping 12% to 155 million tonnes. He said “Authorities will ensure that miners stick to the cap as the government doesn’t want coal production to be too massive and drive prices lower and cause government revenue to drop. We will implement the domestic market obligation as well requiring miners to sell 25% of the output locally at a fixed price.”

Production surpassed the government target in 2019 as about 1,000 companies started operations under fresh mining permits issued by provincial governments. The government plans to track their output through electronic reporting and regular monitoring of their work plan and royalty payments

Coal prices in Indonesia slumped 28% in 2019, tumbling for a third year, as a global economic slowdown curbed demand. The decline in prices also hurt government revenue and contributed to a widening trade deficit in the Southeast Asian nation as coal remains the largest export earner.

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Posted By : Rabi Wangkhem on Fri, 17 Jan 2020
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