London (Platts)--13Dec2007
Indonesia is expected to up its total coal exports in 2008 by 8.5% to 179
million mt, the chairman of the Indonesian coal producers association, Jeffrey
Mulyono, said Wednesday.
Indonesia's coal production next year is estimated to increase by 9% to 234
million mt, according to the coal producers association, from anticipated
production of 215 millions mt in 2007.
"It is much higher than the government's estimate, as producers wants to
benefit from the increasing coal demand from foreign buyers," Mulyono said.
The government had expected coal production in the region of 196 million mt
this year but on November 28, Energy and Mines Minister Purnomo Yusgiantoro
announced that production this year is expected to exceed 198 million mt.
Mulyono suggests that 55 million mt from an anticipated production total of
234 million mt next year would be allocated for the domestic market. The
remaining 179 million mt will be allocated for the export market.
Meanwhile in 2007, Indonesia's domestic coal needs are expected to use 50
million mt, while exports should account for 165 million mt, according to the
chairman of the Indonesian coal producers association.
"Domestic coal demand has yet to be increased significantly in 2008. It is
only raised by 10% next year. However, domestic coal use will increase
tremendously in 2009 and 2010, following the crash power program. At that time
coal export volume may be reduced," Jeffrey said.
Jakarta has plans to build 10,000 MW of coal-fired power plants, which it
wants completed by 2010.
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