JAKARTA (TheInsiderStories) - Energy and Mineral Resources ministry sees the domestic coal production could reach around 413 million tons (MT) in 2017 from this year realization 434 MT, said one senior official. Directorate General for Coal & Resource Minerals Bambang Gatot adding, 120 MT will deliver for domestic market obligation (DMO) from this year target 90 MT.
“Overal this year’s target can be achieved. This year’s production is expected to reach 434 MT from the initial estimation of 419 MT and DMO 90 million tons from the targeted 86 million,” He said at one discussion in Jakarta on Tuesday.
Non-tax revenue targeting Rp45.2 trillion in the State Budget for 2017 from 2016’s target Rp31.1 trillion while revenue-sharing Rp21 trillion from this year estimation Rp13 trillion.
Bambang adding, total investment of the national producer is targeting Rp82 trillion in 2017. Chairman of Indonesian Coal Business Associations Pandu Sjahrir said local player have a limited ability to finance all the government projects to develop 32 gigwatt (GW) of coal-fired power plant across the country until 2019.
So far, He said, market capital of all domestic players only US$11 billion and not enough to fulfill the government target to finance all the project. Even though, he believed Indonesian coal production could growth double in the future if the government give a big support to the industry.
Talking about coal price, Head of Corporate Secretary and Investor Relations of PT Adaro Energy Tbk (IDX: ADRO) Mahardika Putranto sees the global commodity market conditions still over supply but prices began to rebound due to increased Chinese demand on the robust property industry.
This, He continued, could help the coal market. In 2017, according to him, the demand is still same with this year condition but on the longterm view Adaro see coal demand will be significant in Southeast Asian countries.