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Indonesia surpasses goals, aims for 710 million mt coal production in 2024

Indonesia achieved a record-breaking coal production of 775.2 million mt in 2023, surpassing the government's target of 694 million mt.

Indonesia surpasses goals, aims for 710 million mt coal production in 2024

The data, released by MINERBA One Data (MODI) on January 19, revealed a 12% year-on-year increase in output, driven by robust global demand for seaborne coal.

Exports also reached a historic high at 508 million mt in 2023, with the fourth quarter witnessing the peak at 143.50 million mt. China received 215.7 million mt, followed by India at 108.40 million mt.

Minister of Energy and Mineral Resources, Arifin Tasrif, stated that Indonesia met domestic needs (Domestic Market Obligations) with 213 million mt and achieved 518 million mt in exports.

The average prices of free on board Kalimantan 4,200 kcal/kg GAR coal fluctuated throughout the year, starting at $90/mt and ending at $58/mt. This led to increased exports in Q3 and Q4, with buyers capitalizing on declining prices.

Looking ahead to 2024, Indonesian miners are expected to produce at least 30 million mt more than 2023, influenced by the upcoming elections and rising power demand. However, some market participants anticipate challenges, citing declining demand from major consumers and miners' caution about output targets. Despite potential challenges, Indonesia aims to produce 710 million mt in 2024.

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