The Ministry of Energy and Mineral Resources (ESDM) is targeting an increase in coal production this year. Director of Coal Business Development Lana Saria said that coal production for this year is set at 694.5 million tons. This number has increased compared to the 2022 target of 663 million tons. Meanwhile, referring to Minerba One Data Indonesia (MODI), production realization last year reached 684.87 million tonnes. Currently, as many as 749 companies have received approval for the Work Plan and Expenditure Budget (RKAB) from the Ministry of Energy and Mineral Resources. Meanwhile, the remaining 263 companies submitted lower production targets for this year. Lana revealed, of the total production target of 694.5 million tonnes this year, 517.7 million tonnes will be allocated for the export market and 176.8 million tonnes for the domestic market. Lana added, there are a number of factors that will affect coal production this year. Among other things, the reference price of coal is still high, domestic supply obligations or Domestic Market Obligations (DMO) and the assignment of DMO fulfillment for National Electricity Company (PLN), the cement and fertilizer industries. Then, the potential for global market demand, the continuing Russia-Ukraine conflict and weather conditions.
It is noted that PT Bumi Resources Tbk (BUMI) can pursue increased production in 2023. BUMI Director and Corporate Secretary, Dileep Srivastava revealed, BUMI has pocketed the blessing of the Ministry of Energy and Mineral Resources (ESDM) to produce 81.35 million tons of coal. Dileep said Thursday (12/1) that "However, with good weather prospects and higher production potential, it is reasonable to expect higher performance than in 2022." PT Golden Eagle Energy Tbk (SMMT) is optimistic that it can still improve its performance this year. "With abundant coal reserves and continuous business process improvements, we are confident that the Group's production and sales can still be increased going forward," said SMMT President Director Roza Permana Putra in a press release quoted on Thursday (5/1). In Kontan's records, SMMT's coal production for 2022 is targeted to reach 3 million tons. Meanwhile, until September 2022 the realization had exceeded the 2021 annual production of around 2.04 million tons or grew 19% around 2.44 million tons.
