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Tuesday, 03 March 15
INDONESIAN COAL EXPORT VOLUME TO DECLINE 50% BY 2019

COALspot.com: The Indonesian government is planning to reduce coal export volume by 50% within the next five years while keeping its coal production slightly lower or flat from this year.

The Director General of Mineral and Coal of Indonesia has projected that, the coal production and export will be declined by 2019 compared to the 2015 production and exports forecasts.

According to a note that published on DGoMC's website, the DGoMC is projecting that, the coal production is in 2015 will be around 425 million versus export of 323 million tons. The Indonesian government is also expecting that, the domestic end-users such as State Electricity Company, cement factories, steel factories and fertilizer manufacturers will consume around 102 million tons of coal this year or 24% of Indonesian total coal production in 2015.

 



In the meantime, surprisingly, the government has cut its coal export projection by 50.46% by 2019 compared to its projection in 2015.

The DGoMC has projected that, the coal export volume will be around 160 million tons by 2019, 50.46% lesser compared to 323 million tons has been projected for this year.

According to the Director General of Mineral and Coal of Indonesia, Indonesian coal export volume will be slowly reduce to 160 million tons by 2019, from 323 million in 2015. The government has projected in 2016 the coal export will be around 308 million and 292 million by 2017. By year 2018, the government still projecting the coal exports will be around 275 million tons.

Coal production projection is also reduced slightly from 425 million in 2015 to 400 million tons by 2019.

While the projection on domestic consumption, has increased significantly from 102 million tons in 2015 to 240 million by 2019 or up around 135% within next five years from this year. The government is also targeting to burn 60% of total coal production by 2019 domestically.

According to the note, last week, the Director General of Mineral and Coal of Indonesia presented its projection to State Minister for Chairperson of the National Development Planning Agency, Indonesian coal mining association, State Electricity Company, Cement manufacturers, steel industries and fertilizer manufactures.

How the government is going to achieve its projection is still unclear. The DGoMC has increased or kept flat its coal projection target in 2015 compared to 2014 coal production level. While, the Indonesian coal miners, particularly big scale miners are aggressively increasing the coal production this year to keep them float during this low price market.

Indian government has recently announced that, the government will ask coal India to increase the coal production to 1 billion tons by 2019.

The present world's largest power plant coal exporter, may become one the of the largest coal consumer by 2019, if the government successfully implements its projection into real.



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