2018 Coal Production Reaches 548.58 Million Tons

The realization of coal production throughout 2018 surpassed the initial records of the Ministry of Energy and Mineral Resources earlier this year.

Based on data quoted from the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM), Monday (2/18/2019), coal production last year reached 548.58 million tons. The amount is 20 million tons higher than the record in early January 2019 which amounted to 528 million tons.

The difference was due to the fact that the production report from the Mining Business Permit (IUP) in the area had not been fully entered in early January 2019. As is known, the licensing authority of the IUP is currently under the governor.

Keep in mind, the production target last year was actually 485 million tons. However, the government provides 10% additional production facilities from the Work Plan and Budget (RKAB) that have been approved with 25% of the terms of the Domestic Market Obligation (DMO) fulfilled.

Meanwhile, there were no changes to the DMO record or fixed at 115 million tons. Thus, the percentage of DMO last year fell from the initial record of 21.9% to 20.96%.

This year, the ESDM Ministry said that the coal DMO reached 128 million tons, higher than the realization of the DMO in 2018 which amounted to 115 million tons. This amount reached 26% of the production target of 490 million tons.

The need for PLTU still dominates with 95.73 or 74.77% of the total DMO. Other users who need coal quite a lot are cement industry as much as 16.16 million tons or 12.62%, paper as much as 6.21 million tons or 4.85%, and metallurgy 5.41 million tons or 4.23%.

The rest is divided into textile, fertilizer and briquette industries.

“The PLTU consumption growth will definitely increase because there is a 35,000 megawatt (MW) project. Factories are also rising because of economic growth,” said ESDM Ministry Director General of Mineral and Coal Bambang Gatot Ariyono.

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