Published on 06/03/2024 at 13:36 GMT+7 Reading time
The Coordinating Ministry for Maritime Affairs and Investment is optimistic about the future of Indonesian coal, citing anticipated increase in demand from the world’s largest coal-importing countries. coming years.
Septian Hario Seto, Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, dismisses predictions from various international agencies regarding the decline of coal in the near future. He believes that the peak demand for coal will not occur in 2025 or 2026 due to the ongoing construction plans for large-capacity coal-fired power plants (PLTU) in China and India, the two largest coal-importing countries.
"I am more optimistic about coal. If we look at the pipeline for PLTU construction in China, which are amounted to 300 gigawatts [GW], and India with about 60 GW, I do not see coal demand decreasing anytime soon," Seto said during the Economic Outlook 2024 event on Thursday, February 29, 2024.
He cited that China's 300 GW PLTU capacity is estimated to require billions of tons of coal.
"This will impact our coal mining sector and contribute to non-tax state revenue (PNBP) and taxes, as well as royalties. I believe the figures will still be significant for Indonesia's PNBP contribution," he said.
Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) recorded national coal production reaching 775 million tons throughout 2023, exceeding the production target set at 695 million tons for 2023 and marking the highest record in several decades.
Previously, ESDM Minister Arifin Tasrif attributed the increase in coal production to the rising demand in both domestic and international markets last year. "There are additional contributions from the ongoing 35 GW power plant projects," Arifin said in January 2024.
Tag
Already have an account? Sign In
-
Start reading
Freemium
-
Monthly Subscription
30% OFF$26.03
$37.19/MonthCancel anytime
This offer is open to all new subscribers!
Subscribe now -
Yearly Subscription
33% OFF$228.13
$340.5/YearCancel anytime
This offer is open to all new subscribers!
Subscribe now
Set up email notifications for these topics
