Indonesian coal production on track to beat 2024 target

• Domestic consumption grows, exports remain resilient
  
  
• Coal-based power generation increases over 2015-2024
  
  

Mysteel Global: Indonesia's total coal production this year is likely to surpass its target of 710 million tonnes (mnt), the latest data from the country's Energy and Mineral Resources Ministry (ESDM) suggests.

The prediction is based on the fact that the country's coal output during January-September this year touched 613 mnt, leaving only 97 mnt to be produced by the end of December - an easy goal. Moreover, the total annualised output of January-September equates to 817 mnt, Mysteel Global notes.

The higher-than-expected production came as a result of high operations at Indonesian coal mines this year, in response to growing domestic consumption of coal as well as resilient exports.

The country's reliance on coal to keep its power supply stable has also increased significantly in recent years.

Between 2015 and 2023, Indonesia brought 28.5 gigawatts (GW) of coal-fired power generating capacity into operation, quickening from an increase of 16.4 GW over 2000-2014, data from the Global Energy Monitor indicates. This has also boosted its demand for the fossil fuel, stimulating local coal mining activities.

In recent years, Jakarta has steadily raised its annual targets for coal production, with the goal of 710 mnt for this year being higher by 2.2% from that for 2023. Compared with 2019's goal, the goal for 2024 is higher by 45.2%, according to the ESDM's data.

Of the total 710 mnt, supplies to Indonesia's domestic market are expected to reach 181.3 mnt at least this year, market sources disclosed.

Meanwhile, coal exports from Indonesia have remained strong this year, with total exports during January-August up by 7.2% on year to 357.5 mnt, according to data from Statistics Indonesia (BPS).