BUMN Optimistic to Target Coal Production in 2023

Deputy Minister of Indonesia BUMN Pahala Mansury said he was optimistic about the increase in the coal production target that had been set. The Ministry of Energy and Mineral Resources (ESDM) has set this production target increase of 695 million tons in 2023. This is supported by the high demand for coal commodities from outside Indonesia.

“With what is currently happening in Ukraine. Coal is indeed an alternative energy. Given the energy sources that have so far probably come from Ukraine and Russia, there are obstacles,” he explained (01/02/2023).

According to cnbcindonesia.com, several countries have begun to reactivate coal-based power plants. According to Pahala, these countries previously planned to stop using coal-based power plants.

“However, if we look at the relation between the coal commodity and developments in Ukraine, this does have a pretty good impact on the demand as well,” added Pahala.

Previously Minister of Energy and Mineral Resources Arifin Tasrif had said that Indonesia was ready to export more than 500 million tons or more of coal this year. This number has increased compared to last year’s achievement of coal exports of 494 million tonnes.

Government projected that domestic demand for coal will be 177 million tons and 518 million tons for export. Therefore the government is targeting 695 million tons of coal production to be carried out in 2023.