National Coal Production Surpasses Previous Year's Figures, Aiming for Targeted Growth
Until May 2023, national coal production in Indonesia reached 295.88 million tons, demonstrating an increase compared to the same period last year.
Lana Saria, the Director of Coal Business Development at the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources, stated that out of the total production, 209.49 million tons were for the export market, while 71.05 million tons were allocated for the domestic market obligation (DMO).
"Compared to the same period in 2022, actual production has risen by 12%, accompanied by an 11% increase in sales," Lana explained to Kontan on Monday.
The government has set a target for coal production to reach 694.50 million tons this year, with an export plan of up to 460 million tons.
According to the official Minerba One Data Indonesia (MODI) website, real-time production until June 2023 has reached 340.78 million tonnes, accounting for 49.07% of the set target.
Meanwhile, coal exports until June 2023 have reached 108.75 million tons, equivalent to 23.64% of the target.
Challenges in meeting the national coal production arise from weather conditions, particularly the high intensity of rain during the first three months of the year.
Despite these challenges, several coal producers are determined to maintain their coal production targets for this year.
Apollonius Andwie, the Corporate Secretary of PT Bukit Asam Tbk (PTBA), expressed optimism in maintaining positive performance for the company.
"Despite various challenges, we remain optimistic. We have prepared a number of measures to ensure PTBA's financial condition remains healthy," Apollonius stated.
In the first quarter of 2023, PTBA's coal production reached 6.8 million tons, a year-on-year growth of around 7% compared to the same period last year.
PTBA aims to achieve a coal production target of 41 million tons this year, representing an 11% increase compared to the 2022 achievement of 37.1 million tons.
To maximize coal sales for the remainder of the year, PTBA will focus on optimizing both the domestic and export markets, including exploring opportunities in countries with promising growth prospects such as India and Southeast Asia.
PTBA also looks forward to the implementation of the Coal Management Agency Partner (MIP) scheme initiated by the government, as it is expected to positively impact PTBA's financial performance.
Febriati Nadira, the Head of Corporate Communication at Adaro Energy (ADRO), stated that ADRO will maintain its production target for the year, set at approximately 62 million to 64 million tons.
As of the first quarter of 2023, ADRO recorded a production volume of 15.69 million tons.
Dileep Srivastava, the Director and Corporate Secretary of PT Bumi Resources Tbk (BUMI), confirmed that the company's target for this year remains unchanged.
"There have been no changes from the full-year guideline, with a range of 75 million to 80 million tons," said Dileep.
In the first quarter of 2023, BUMI reported a sales volume of 15.4 million tons of coal, a slight 4% decrease compared to the same period last year, which recorded sales of 16.0 million tons.
Image source: KONTAN/Muradi
