Coal Production Last Year 14.8% Above Target

Coal Production Last Year 14.8% Above Target

Jakarta, APBI-ICMA: The Ministry of Energy and Mineral Resources recorded a realization of coal production over the past year reaching 557 million tons. This realization is 14.8% above the target set by the government last year of 485 million tons. Last year's production also recorded an increase of 20% compared to the previous year which was only 461 million tons.

Meanwhile, the realization consisted of Coal Concession Work Agreement amounting to 295.66 million tons, State-Owned Business Enterprise Mining Business License 25.80 million tons, Foreign Investment IUP 25.05 million tons. Meanwhile, the Regional Domestic Investment IUP amounted to 211.27 million tons.

ESDM Ministry Director General of Mineral and Coal Bambang Gatot Ariyono said the increase in production was aimed at increasing the country's foreign exchange. Last year the government also opened the opportunity for additional 100 million tons of coal production quota. However, the company only proposed additional production to the government of 25 million tons.

"National production continues to increase. This is in order to pursue foreign exchange, the government provides additional exports," Bambang said, in Jakarta, Monday (11/3). Meanwhile, the realization of the obligation to distribute domestic coal (Domestic Market Obligation / DMO) in 2018 amounted to 115.10 million tons. Consisting of PKP2B 74.85 million tons, IUP BUMN 11.36 million tons, IUP PMA 5.51 million tons, IUP Regional Domestic Investment 24.15 million tons. Domestic coal is supplied for Steam Power Plants of 91.14 million tons, metallurgical 1.75 million tons. Whereas, for cement, textile, fertilizer and pulp amounted to 22.18 million tons, briquettes were 0.01 million tons.

Whereas, for this year's production target of 489.13 million tons, it consists of PKP2B of 324.89 million tons, IUP of BUMN 26.01 million tons, IUP of PMA 32.46 million tons, IUP of Regional Domestic Investment of 105.79 million tons.

This year the government is targeting coal DMO of 128 million tons. This obligation consists of the needs of 95.7 million tons of PLTU, 5.4 million tons of metallurgy, 1.4 million tons of fertilizer, and 16.15 million tons of cement.