Jakarta, APBI-ICMA: KONTAN.CO.ID Monday March 11 2019 reported that the Ministry of Energy and Mineral Resources noted that there was an increase in realization of coal production throughout 2018. If the prognosis in January is realized at 528 million tons, then in mid-February it rises to 548.58 million tons, now the production realization has skyrocketed to 557 million tons.
ESDM Ministry Director General of Mineral and Coal Bambang Gatot Ariyono said that the increase in production was due to a number of new regional Mining Business License holders reporting the realization of their production.
However, Bambang did not confirm whether the number could still be increased or was final. "The main thing is that, I don't know if I add more," Bambang said after a hearing with Commission VII of the Indonesian House of Representatives on Monday (11/3).
Clearly, Bambang said that the actual realization had skyrocketed from the production target stated in the 2018 Work Plan and Budget which was recorded at 485 million tons.
Bambang said, this was due to the addition of an export quota of 100 million tons in September last year in an effort to reduce the trade balance deficit. "This cannot be separated from the additional export quota of up to 100 million tons," he explained.
Meanwhile, the realization of production reaching 557 million tons is the highest in the last five years. In 2014, national coal production only reached 458 million tons, then increased to 461 million tons the following year.
Production had declined to 456 million tons in 2016, but rose again to 461 million tons a year later. Then, it skyrocketed to 557 million tons in 2018.
Meanwhile, this year, the national coal production target set in the Work Plan and Budget is 489.13 million tons. However, Bambang previously said that it did not rule out the possibility to re-open additional production quotas to remain open.
This is possible by considering a number of factors, such as reports on the realization of the company's production, if needed to boost exports to boost state revenues.
Bambang said, this could only be seen in June when the revised Work Plan and Budget were carried out. "Yes, we will see what the realization will be in the first place. Revision will be the limit in June," he said.