Coal mining industry players have observed a surge in coal production nearing the year's end. Hendra Sinadia, the Executive Director of the Indonesian Coal Mining Association (APBI), revealed that the production uptick was driven by both domestic and export demands. "So far, production has been quite high, supported by both export and domestic demand," mentioned Hendra to Kontan.co.id on Monday (11/12). Earlier, industry players anticipated increased coal consumption entering the winter season. Referring to Minerba One Data Indonesia (MODI) as of Monday (11/12), coal production has reached 718.37 million tons, equivalent to 103.44% of the 694.50 million-ton production target.

Regarding coal exports, the realized volume stands at 363.17 million tons, approximately 8.95% of the 460 million-ton export target. Additionally, meeting the domestic market obligation (DMO) for coal has reached 71.06 million tons, equivalent to 40.19% of the 176.80 million-ton target, with a realization of 306.89 million tons for the domestic market. Hendra noted a recent increase in coal prices. According to Argus Media data, coal prices have fluctuated between September and November 2023. However, the price trend for several coal calorific values has been relatively stable. As of November, the Indonesia Coal Index (ICI) 1 (6,500 GAR/6,200 NAR) recorded at USD 118.75 per ton. Meanwhile, ICI 2 (5,800 GAR/5,500 NAR) stood at USD 92.89 per ton, ICI 3 (5,000 GAR/4,600 NAR) at USD 79.71 per ton. ICI 4 (4,200 GAR/3,800 NAR) was noted at USD 58.35 per ton, and ICI 5 (3,400 GAR/3,000 NAR) at USD 38.38 per ton.

Source: https://industri.kontan.co.id/news/permintaan-ekspor-dan-domestik-mendongkrak-produksi-batubara