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Indonesia targets coal production of 550m tons in 2021

Norman Harsono (The Jakarta Post)
Jakarta
Thu, December 10, 2020

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Indonesia targets coal production of 550m tons in 2021 Heavy equipment owned by PT Berau Coal is used for mining activities at the Binungan mine in East Kalimantan in this file photo. (JP/Indra Harsaputra )

T

he Energy and Mineral Resources Ministry has set Indonesia’s coal production target at 550 million tons for next year, a figure unchanged from this year, due to the raging pandemic.

Energy ministry coal business director Sujatmiko told reporters at the 2020 Coal and Mineral Virtual Expo on Thursday that next year's target “takes into account economic recovery, following the COVID-19 pandemic, for both the domestic and export market.”

His words reflect many analysts' sentiment that, even though global coal demand and prices are expected to rebound starting next year, they will be nowhere close to 2019 levels, when the world was largely coronavirus-free.

According to the World Bank’s October commodity outlook report, international coal prices will hover at $57 per ton between 2020 and 2021, much lower than the average $78.3 per ton last year. Prices will sink further until 2030.

Read also: Coal exporters don’t expect recovery until H2 next year

Sujatmiko added that coal production had reached 513.6 million tons as of Dec. 10 this year or 93 percent of the 2020 target. The government remains determined to meet this year’s coal production target, despite the lower demand.

The Indonesian Coal Mining Association (APBI) previously said it expected coal demand to really start recovering in next year’s second half, assuming most of the world successfully distributes a COVID-19 vaccine by that time.

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