Indonesia's coal production is on track to reach an all-time high this year, not just surpassing the government's target, as strong global demand and good weather spurred mining operations.

Coal production reached 751.58 million tonnes as of December 27, the Ministry of Energy and Mineral Resources (ESDM) said, completing 108.22% of the 694.5-million-tonne target.

Coal sales also soared past the goal, with 705.49 million tonnes sold so far or 101.58% of the target, the ESDM noted.

The ministry had previously predicted production could hit 775.17 million tonnes by end-2023, representing an 11% rise from the target.

Lana Saria, director of Coal Business Development at ESDM, said higher output was driven by declining coal prices and rising consumption following the COVID-19 pandemic.

"Although prices declined, they continue hovering at a high level. Global and domestic economic growth has increased energy needs after COVID-19," she told reporters.

Strong production has boosted royalty revenues for Southeast Asia's largest economy. As of December 11, the coal sector contributed 94.6 trillion rupiah ($6.13 billion) in royalties, above the 2023 target of 84.268 trillion rupiah.

"In addition to royalties, there are other income items such as levy payments, administrative fines, domestic market obligations and account corrections," Lana added.

Indonesia is world's biggest thermal coal exporter. In January-November, China imported 199.1 million tonnes of coal from Indonesia, soaring 30% from the same period last year, Chinese customs data showed. Indonesia accounted for 46.6% of China's total coal imports.

(Writing by Alex Guo  Editing by Harry Huo)
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