Indonesia unlikely to meet 2024 coal output target

Indonesia's National Mining Industry Association (IMA) has said domestic producers may fall short of this year's coal output target with an ongoing oversupply in the global market.

Speaking at a press conference, IMA Chief Executive Hendra Sianadia said it was unlikely to achieve the government's target in 2024. Coal production in the first quarter of this year was behind previous years, along with a global oversupply and lower export demand, leading to a decrease in coal prices compared to the same period last year.

Domestic coal producers also predicted that output may decline sequentially in the next two years, with output expected to reach 917.16 million tonnes in 2025 and 902.97 million tons in 2026.

Indonesia has produced 138 million tons of coal in the first three months of 2024, about 24% lower than the 183 million tons it produced in the same period last year. According to data from Indonesia's Ministry of Energy and Mineral Resources, so far, total domestic coal production has reached 297.46 million tons, equivalent to 32% of this year's national target. Meanwhile, coal sales reached 279.21 million tons in the first quarter.

According to the work plan and the national budget, coal production companies need to achieve an output of 922.14 million tons in order to meet the 2024 target.