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NEWS UPDATES Asean Affairs   03 January 2011

Indonesian coal production surges

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Indonesian coal miners expect to produce 340 million tons of coal in 2011, an increase of 23 percent from 275 million tons last year, to catch up with the growing demand of domestic and international markets.

Indonesian Coal Mining Association (APBI) executive director Supriatna Suhala said almost all coal miners in the country had expressed their commitments to expanding their production in 2011.

“As the global economy recovers, we expect to see growing demand for coal both at domestic and international markets next year [2011],” he told The Jakarta Post over the weekend.

Of the planned 340 million tons of coal produced in 2011, the association estimates 20 percent of them – around 70 million tons – will be allocated to fulfill domestic market demand, while the remaining 80 percent will be exported.

“We predict that we’ll see soaring demand for coal in emerging market economies in 2011, particularly to supply their energy sectors,” Supriatna said, adding that Japan, India, China and South Korea would remain the largest importers of Indonesia’s coal.

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