Indonesia 2009 Coal production rate target

The Indonesian government is set to target a production rate of 261.6 million mt of coal in the state budget draft for 2009. It will be the first time the government will set a target in the budget revenue, a senior official said June 19.

“It is the first time the government has set coal production as part of the country’s 2009 state budget draft,” the mineral, coal and geothermal director general at energy and mines ministry Simon Sembiring said.

The total production estimated next year is expected to contribute Rupiah 20.1 trillion ($2.17 billion) to the country’s revenue, Sembiring said. However, the final coal production figure will need approval from the parliament.

Sembiring reiterated that the country’s coal production equates to more than 2 million barrels oil equivalent per day, much more than Indonesia’s oil production of around 950,000 barrels/day.

“We see that coal production is very prospective in the coming years, we could rely on this commodity to increase our revenue,” he said. Previously Indonesian only set a target for oil and gas production in the state budget.

The 261.6 million coal production target next year comprises of 89.58 million mt of high quality coal (CV >6,100), 150.445 million mt of medium quality coal (CV > 5,100-6,100) and low rank coal (CV < 5,100), according to Sembiring.

Around 75.4 million mt of the total coal production next year would be allocated for domestic, mostly for coalfired power plants, while the remaining would be allocated for export. Indonesia has proven coal reserves of 18.71 billion mt with resources of 93.4 billion mt.

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One Response

  1. […] relatively low. China has shifted from net exporter to bare self-sufficiency. South Africa and Indonesia have historically been net exporters, but are currently retaining more for internal requirements. […]

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