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Demand from China and India will boost Indonesia's coal production, even beyond the target set for 2024, according to the Indonesia Mining and Energy Forum (IMEF).
There is still a demand (for Indonesian coal) in China and India, local media cited IMEF Chairman Singgih Widagdo as said on January 23.
"I would say Indonesia's coal production would range between 750 million and 775 million tonnes this year. Because India and China are still constructing coal-fired power plants, although that does not mean they are not trying to adopt renewable energy," Singgih said.
Indonesia aims to produce 710 million tonnes of coal in 2024, against a record high of 775 million tonnes last year, which is much higher than the government's goal of 694.5 million tonnes.
The country's coal exports reached 513 million tonnes in 2023, showed cargo-tracking data from Kpler, while the rest went to meeting domestic demand.
Coal exports to China stood at 221.08 million tonnes, followed by India at 102.78 million tonnes. The top two countries accounted for 60% of Indonesia's coal exports.
Singgih said the Indonesian government should form a team to have government-to-government discussions with China and India regarding coal. This is to anticipate the possibility of them putting the brakes on coal imports.
He cautioned that if coal production reaches nearly 800 million tonnes, and China and India reduce imports, it could adversely impact miners and the environment.
In early 2023, India said it planned to produce 1.3 billion tonnes of coal by 2025 to cut down imports.
(Writing by Rebecca Liu Editing by Harry Huo)
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