Data from the Ministry of Energy and Mineral Resources’ Minerba One Data Indonesia (MODI) shows that Indonesia’s coal production from January to October 2023 has reached 635.07 million tons. This achievement is 9.39% higher than the same period the previous year of 575.38 million tons. Meanwhile, as of 7 November 2023, total coal production has reached 640.54 million tons or 92.23% of the 2023 production target of 694.5 million tons.
This article was published on Katadata.co.id with the title “Indonesia’s Coal Production Increases 9.4% Until October, Reaching 635 Million Tons”.
When viewed based on the realization of coal production per month, the biggest surge in production occurred in January 2023. It was noted that in the first month of 2023 the amount of coal production realization reached 62.27 million tons. This result shows an increase of 39.81% compared to January 2022 which was only 44.54 million tons.
In the period from January to October 2023, the realization of coal production decreased in the last two months, namely September and October. In October 2023, coal production was 52.76 million tons. This number decreased by 15.3% or 9.53 million tons compared to October 2022 which reached 62.29 million tons. Not only October, the decline in coal production realization in 2023 compared to 2022 also occurred in September.
MODI noted that in September 2023 the amount of coal production realization was 61.12 million tons, down 1.12% compared to the previous year which reached 61.81 million tons.
Production Surge Pushes Coal Prices Down
Coal prices have fallen sharply so far this year. Coal entrepreneurs in the country said the fall in coal prices was influenced by oversupply due to high production amid limited demand.
“Yes, the price trend is down due to oversupply conditions,” Indonesian Coal Mining Association (APBI) Executive Director Hendra Sinadia told Katadata.co.id on Thursday (2/11).
According to Hendra, this oversupply is caused by falling demand while production is quite high. Until the third quarter of 2023, coal production increased by 7% compared to the same period in 2022.
For information, the price of coal at ICE Newcastle Australia, which is one of the global benchmark prices, is currently at US$ 122.25 per ton, down 56.20% compared to the position at the end of 2022 at US$ 279.15 per ton.