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Indonesia may not meet EU demand for coal
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European countries have been approaching Indonesia for increased coal supplies.
I
ndonesia may be unable to meet increasing demand for coal from European countries that are looking to stock up on the dirty fuel source as they reduce energy imports from Russia.
Spain, Italy and the Netherlands have joined Germany in exploring options to purchase a larger amount of coal from Indonesia, the Energy and Mineral Resources Ministry has said.
Previously, Germany was said to have asked for around 150 million tons of coal from Indonesia, but the ministry said there was no formal agreement to that request.
India, which is Indonesia’s second-largest coal export destination, has also approached Indonesia to acquire more coal to meet its domestic needs.
Indonesian coal shipments to Germany, Netherlands, Spain, Italy, Poland and Switzerland have increased tremendously over the first five months of the year compared with the same period of last year, Statistics Indonesia data show.
Energy and Mineral Resources Ministry special advisor Irwandy Arif expressed doubts that Indonesia could meet additional demand from Europe, arguing that many producers were having a hard time increasing their production due to extreme weather and difficulties in obtaining mining equipment.
He pointed out that producers had met only 41 percent of their full-year output target by the end of May, implying a possible shortfall in this year's production.
