This Year, The ESDM Ministry Will Encourage Production of 663 Million Tons Coal


After previously the government banned coal exports due to minimal absorption in the country, now the government is starting to focus on coal production. This was confirmed directly by the Ministry of Energy and Mineral Resources of the Republic of Indonesia (ESDM).

According to the Ministry of Energy and Mineral Resources, as much as 663 million tons of coal will be produced this year, with a domestic market obligation (DMO) of 166 million tons. So far, the realization of coal production has only reached 13 million tons.

“In 2022, of the planned coal production of 663 million tons, the DMO plan is 166 million tons,” said Minister of Energy and Mineral Resources Arifin Tasrif in a hearing with Commission VII DPR RI, Thursday (17/2).

Arifin said that the domestic demand for coal for the power generation sector and industry is expected to increase in the next five years. The prediction is that 163 million tons this year will be 208.5 million tons in 2025. Furthermore, the planned coal demand for steam power plants (PLTU) this year will reach 127.1 million tons.

Arifin detailed the needs, “It consists of 64.2 million tons of PLTU owned by PLN and 62.9 million tons of Independent Power Producer (IPP) with an average need of 10 million tons to 11 million tons per month.”

With data showing the increasing use of coal, the Ministry of Energy and Mineral Resources and PLN have several ways to maintain the coal supply in Indonesia.

These methods are, first, the Ministry of Energy and Mineral Resources through the Directorate General of Mineral and Coal and PLN has prepared a real-time enforcement system.

This system combines systems, field supervision, and digital systems that are directly integrated with the management information system at the Directorate General of Mineral and Coal.

“If there is a loading failure at a certain location, a notification will appear to the system of the Directorate General of Mineral and Coal and a warning letter will be sent automatically. Thus, corrective action can be carried out quickly, precisely, and measurably,” added Arifin.

The second way is, PLN has changed the contract to a long-term one with the company so that the Ministerial Decree (Kepmen) of ESDM Number 139 of 2021 can be applied. Contracts that previously focused on flexibility have been refined into long-term fixed contracts.

Then, the third way, PLN makes extraordinary efforts on the unloading side to increase the capacity and speed of unloading. Fourth, PLN resolves issues of volume, logistics, contracts, supervision, and enforcement, so that PLN ensures the supply of coal is in a safe condition.

And lastly, the volume of coal supply to PLTU PLN from mining companies is contained in the approval of the work plan and budget (RKAB) which the company must comply with.