The coal export sector in Indonesia is anticipated to witness a resurgence in 2024, with the projection for 2023 setting the export of Indonesian coal at an estimated 511.58 million tons. Lana Saria, the Director of Coal Business Development at the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources, attributed this positive outlook to the surpassing of the annual coal production target in November 2023, which reached an impressive 710.57 million tons. The achievement represents 102.3% of the national coal production target for 2023, set at 694.50 million tons. The notable increase in coal demand, both domestically and internationally, has contributed to exceeding production and sales targets, resulting in a favorable performance for the mining sector throughout 2023. Comparatively, data from the Ministry of Energy and Mineral Resources indicates that coal export sales in 2022 reached 367.94 million tons. If the projected coal export figure for 2023 materializes at 511.58 million tons, the annual growth in export volume would be approximately 39.03% year-on-year (YoY).
Looking ahead to 2024, the Ministry of Energy and Mineral Resources aims for a more ambitious coal production target, aspiring to reach 710 million tons, surpassing the 2023 production target of 694.50 million tons. Despite these positive projections, challenges persist for industry players, particularly in terms of rising operational costs faced by miners in 2023. Higher fuel prices and an increasing stripping ratio have placed additional burdens on company margins, especially amid declining price trends in the first half of 2023. Hendra Sinadia, the Executive Director of the Indonesian Coal Mining Association (APBI), highlighted the challenges faced by miners, including the escalating operational costs due to fuel price hikes and a higher stripping ratio, affecting company margins amid a declining price trend. Moreover, the obligation to allocate 30% of export revenue from natural resources to domestic banks for three months presents a cash flow management challenge for companies. According to Hendra, these conditions may persist until 2025. Additionally, the industry is awaiting clarification on the untested Batubara Compensation Fund (DKB) scheme through the Managerial Institution Partner (MIP) scheme in 2024, as the draft presidential regulation and its implementing rules have not been communicated to industry stakeholders. In conclusion, while the coal export sector faces operational and financial challenges, the positive production and export projections underscore the resilience and strategic importance of the Indonesian coal industry in contributing to economic growth and sustaining the country's position as a key player in the global coal market.
Source: https://amp.kontan.co.id/news/volume-ekspor-batubara-diproyeksi-capai-51158-juta-ton-di-tahun-2023
