The Ministry of Energy and Mineral Resources (ESDM) is targeting an increase in national coal production entering the second half of 2023.

Director of Coal Business Development at the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources, Lana Saria, said that coal production activities throughout the first half of 2023 ran smoothly.

"It is possible that there will be plans to increase production considering that currently many coal companies are proposing to increase production," Lana told Kontan, Monday (7/8).

Lana explained, based on the evaluation carried out, there were no significant challenges for production activities in the first half of 2023.

According to him, many companies holding Coal Mining Business Work Agreements (PKP2B), Special Mining Business Permits (IUPK) to Production Operation Mining Business Permits (IUP OP) are proposing to increase production through the mechanism for changing the 2023 Work Plan and Budget.

As production activities run smoothly, Lana ensures that the commitment to fulfill coal for the domestic sector or the Domestic Market Obligation (DMO) runs smoothly. 

It was recorded that the realization of coal production for the period January - July 2023 reached 369.17 million tons or 53.16% of the planned coal production of 694.50 million tons.

Meanwhile, until the June 2023 period, the realization of coal exports was 249.03 million tons and DMO was 97.17 million tons. 

"Until now the commitment to fulfilling the DMO is still running smoothly. This is proven by the fact that until now there have been no reports of shortages of coal stock by domestic end users ," explained Lana.

Lana added, mining companies had also fulfilled their DMO obligations in accordance with the DMO assignment letter given by the Directorate General of Mineral and Coal of the Ministry of Energy and Mineral Resources.

Previously, the Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia explained that the commitment of member companies in supplying coal to the country was going well.

So far the company's commitment is good, PLN's generator operation day (HOP) is reportedly also within safe limits," explained Hendra to Kontan, recently.

Image source: KONTAN/Muradi

Source: https://industri.kontan.co.id/news/kementerian-esdm-berencana-tingkatkan-produksi-batubara-nasional-tahun-ini