Until May, Coal Production Reaches 42 Percent Amid The COVID-19 Pandemic

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JAKARTA - Director of Coal Business Development, Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources, Sujatmiko, said that the prospects for coal in the future could be very good. This is evidenced by the realization of production until May 2020 which reached 42 percent.

Sujatmiko said that his party is optimistic that the 2020 target will be achieved 100 percent even though currently the COVID-19 pandemic is sweeping the world, including Indonesia.

"We plan this year to be 550 million tonnes with a Domestic Market Obligation (DMO) of 155 million tonnes. The reality is that up to May, our production is approximately 228 million tonnes or 42 per cent. Seven months from now, we think we can achieve this target of 550 production. , "he said, in a virtual discussion, Tuesday, June 30.

Furthermore, Sujatmiko admitted, the pandemic has indeed affected the domestic use of coal. Of this 228 million tonnes that are used domestically, around 43.75 million tonnes, approximately 28 percent of the 100 percent target by the end of the year.

"Due to this pandemic condition, many industries are not running, so the demand for electricity has indeed decreased, as a result the use of coal for the public has also decreased. So our DMO has only reached 28 percent," he explained.

However, Sujatmiko believes, DMO will continue to increase in the future. This is because the use of electrical energy will also develop.

"Moreover, later if we can provide some kind of guarantee that coal can also meet energy needs and demand. With full technology, the future of domestic use of coal can still be extended and we can secure it," he said.

Sujatmiko said that the use of domestic coal was mostly absorbed by electricity, around 70 percent or 109 million tons. Then the cement sector absorbed 10 percent or 14.54 million tons, management and refining 16.52 million tons or 11 percent, textiles and paper 4 percent each. While fertilizer is 1 percent or 1.73 million tons.

"How is the condition of our coal with the presence of COVID-19? I convey today that even though electricity has decreased, thank God the need for coal for smelters for on-streaming has increased. This means that there is a new niche for us to receive coal needs in the country," he explained.