JAKARTA (TheInsiderStories) - The energy and mineral resources (EMR) ministry sees, the demand for Domestic Market Obligation (DMO) is estimated to increase by 21 percent to 187 million tones (MT) of coal in 2024 from this year is targets 155 MT of coal. In 2021, the domestic demand is estimated increases to 168 MT of coal, 2022 to 177 MT of coal, and 184 MT of coal in 2023.
Director at the ministry, Sujatmiko, in one event said, based on his office program, the coal production in 2021 could reach 609 MT of coal from this year around 550 MT of coal. Until November 2020, the coal production has reached 514 MT of coal or around 93.45 percent of the target.
Then, he continued, the production could raises to to 618 MT of coal in 2022, 625 MT of coal in 2023, and then in 2024 to reached 628 MT of coal. While, the proven reserves of coal in 2020 are estimated at 39.31 billion tones of coal. But, in 2024 its estimated to decreases by 5.5 percent to 37.15 billion tones of coal.
Sujatmiko stated, this estimating with calculation the economy recover from the pandemic, the coal consumption for electricity generation, fertilizer, cement, textile and paper industries will increases. In addition, some smelters will operating next year and to support the domestic demand for coal.
A number of miners are also preparing to cut their production volumes, which have been set at the beginning of this year in line with weaker demand which is pressing down on coal prices. Two issuers with the largest market capitalization, PT Adaro Energy Tbk (IDX: ADRO) and PT Bayan Resources Tbk (IDX: BYAN), are some of the producers that have announced production cut.
Bayan, which originally set a production target of 31 million to 33 MT of coal at the beginning of this year, has cut the target to only 26 million tons by the end of 2020. While, Adaro cut its coal production target by around 10 percent of last year’ total production, or is below this year targets of 54 to 58 MT of coal.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
