Indonesia's coal production targets under threat

The coal production target of 922.14 million tons by the end of 2024 set by the Ministry of Energy and Mineral Resources (ESDM) will be difficult to achieve. Rizal Kasli, President of the Indonesian Association of Mining Professionals (Perhapi), said that uncertain global economic conditions are among the factors affecting domestic coal production. In particular, China's low growth rate of 5% may have a negative impact on coal consumption.

Kasli emphasized that India's increased coal production will also have an impact on import rates. He added that world coal prices also have a big impact on supply and demand. He also pointed out that due to the rainy season in Indonesia, coal production decreased in many regions.

Gita Mahyarani, Acting Executive Director of the Indonesian Coal Mining Association (APBI), said that domestic coal production this year could reach the government's target of 710 million tons, but the RKAB target of 922 million tons is challenging. ESDM noted that coal production reached 657.46 million tons by October 2024. This is 92.6% of the 710 million tons target.

International thermal coal prices have also been volatile. Prices decreased in Europe, South Africa and the US, while high-calorie coal prices increased in Australia and Indonesia. However, the reluctance of Chinese buyers and holidays in India weakened demand. On the supply side, the absence of any major disruptions increased material availability.