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Coal price increases, the miners boost productions

Senin, 27 Februari 2017 / 11:49 WIB

Coal price increases, the miners boost productions

JAKARTA. The Ministry of Energy and Mineral Resources (ESDM) increased the target of coal productions by 13.8% from 413 million tons to 470 million tons. According to the Director General of Mineral and Coal at the Ministry of ESDM Bambang Gatot Ariyono, the revision is in line with the results of the evaluation on working and budget plans (RKAB), which were proposed by the coal miners.

In order to realize the target, the Directorate General will build coordination with the National Development Plan Agency (Bappenas), on the grounds that the medium term national development plan (RPJMN) has set the target of coal productions at 413 million tons for this year.

“The RKAB has determined the coal productions at 470 tons. We will confirm that number to Bappenas,” he said, Friday 24/2.

He continued, the production plans of the Agreement of Work of Coal Mining Business holders have been approved. However, the production targets of the special mining license (IUPK) holders remain fluid.

PTBA’s Productions increased

Meanwhile, the Corporate Secretary of PT Bukit Asam (PTBA) Adib Ubaidillah said, the company is also planning to increase the coal productions from 25 million tons to the maximum of 32.5 million tons. In order to achieve the target, PTBA hopes that PT Kereta Api Indonesia (KAI), which is also the partner of PTBA, can optimize the coal transportation in Palembang, South Sumatra.

As information, KAI has facilitated the coal transportation from PTBA’s coal mining in Tanjung Enim (South Sumatra) to Tarahan Port in Lampung. Aib told KONTAN (26/3) that PTBA will increase the productions by about 25%-30% in this year, following the increase in the transportation capacity of PT KAI.

Meanwhile, the Head of Corporate Communication Division of PT Adaro Energi Febriati Nadira said that the company is unlikely to revise the production target in 2017 that amount to 52 million tons-54 million tons.

Meanwhile, the Executive Director of Indonesia’s Coal Mining Association (APBI) Hendra Sinadia estimates, the increase in coal production targets has considered the interests of many parties, including the interests of the government. Previously, the realizations of coal productions in every year have never met the targets.

Hendra added, the high production plan reflects the optimism of coal mining business participants. The condition was reflected on the coal prices, which have gradually increased from the lowest point in the middle of last year.

Last year, the realization of national coal productions was 434 million tons, or 3.5% higher than the target of 419 million tons.(Muhammad Farid/Translator)

Reporter: Pratama Guitarra
Editor: Sanny Cicilia
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