2019 Coal Supply for Domestic is Too High

2019 Coal Supply for Domestic is Too High

Jakarta, APBI-ICMA: Katadata.co.id February 20, 2019 reported that business people considered the target of this year's Domestic Market Obligation (DMO) to be too high. The government has set a coal DMO target this year of 128 million tons, or 26.12 percent of the production target of 490 million tons.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said business people would find it difficult to supply DMO coal. So, it is predicted that many companies will be sanctioned by production cuts. "The target for this year is rather high, we will be in trouble," he said, to Katadata.co.id on Wednesday (2/20).

According to him, the addition of the new Steam Power Plant (PLTU) which will operate this year will not have enough influence on domestic coal absorption. Because there are some obstacles faced from previous years.

For example, maintenance is needed for the plant so that it is temporarily unable to operate. Besides that, the weather is bad, so that coal shipping is hampered. "Last year the expectation was also like that. But the obstacles were various, so we asked to be reviewed again," he said.

From the total coal DMO this year, the Ministry of Energy and Mineral Resources (ESDM) has determined that the distribution for the metallurgical industry is 5.4 million tons, the fertilizer industry is 1.4 million tons and the cement industry is 16.15 million tons. Meanwhile, coal consumption last year for PLTU 91.14 million tons, metallurgy 1.75 million tons, cement, textile, fertilizer and paper amounted to 22.18 million tons. In addition, for briquettes of 0.01 million.

In contrast, this year's coal production target actually dropped. Coal companies can only produce 490 million tons, lower than last year's 585 million tons. This figure includes production cuts for 34 companies that do not meet the DMO.

 

Source:

https://katadata.co.id/berita/2019/02/20/pasokan-batu-bara-untuk-domestik-2019- rated- too high  

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