The effort to limit coal output has been reflected in lower production targets set by the Energy and Mineral Resources Ministry of 397 million metric tons (mt) this year, down from 421 million mt in 2013, or a 6% decrease year-on-year.
R. Sukhyar, a director general at the ministry, said production control preparations are under way via assessments of the work plans of mining companies that have mostly set higher 2014 production targets. “The easiest way to control coal production is through the work plan and budget of the companies,” Sukhyar said.
In recent years, Southeast Asia’s No. 1 economy has seen booming coal production, making it a major coal exporter, with some of the world’s most prolific thermal coal deposits. Indonesia’s coal reserves, however, only represent an estimated 2% to 3% of global reserves.
Mineral Resources Ministry statistics have reported reserves at slightly below 32 billion mt, of which 8.9 billion are proven. Significant increases in national coal production, at 15% in 2012 and 28% in 2011, respectively, were seen as miners boosted production amid heightened market demands.