The Ministry of Energy and Mineral Resources (ESDM) has approved 587 work plan and budget proposals (RKAB) in the coal sector, out of 883 applications submitted to the ministry.
“We submitted the summary of RKAB for coal for the period of 2024-2026 on Monday, March 18, 2024. There were 883 applications, and 587 were approved,” Acting Director General for Minerals and Coal at ESDM, Bambang Suswantono, told a hearing with Commission VII of the DPR, on Tuesday, March 19, 2024.
Out of the 587 approved RKAB applications, Bambang revealed that the coal production plan for the next 3 years is set at the average level of 900 million tons.
“The total coal tonnage for 2024 is 922.14 million tons, for the year 2025 is 917.16 million tons, and for the year 2026 is 902.97 million tons,” he cited.
Bambang said there were 121 RKAB applications that were not approved, another 100 applications were returned for revision, and 75 applications are currently under evaluation.
Bambang outlined several reasons why 121 RKAB applications were rejected. He detailed reasons for RKAB not being approved including expired mining business license (IUP) with 8 applications, non-tax state revenue (PNBP) with 75 applications, feasibility studies and environmental impact assessments with 4 applications.
As for the national coal production realization throughout 2023, it reached 775 million tons, exceeding the production target set for 2023 at 695 million tons and marking the highest record in several decades.
ESDM Minister Arifin Tasrif said that the increase in the production of the black gold commodity is due to the surge in demand in the domestic and international markets throughout last year.
“There are additional contributions from ongoing 35 GW power plant projects to be completed,” Arifin said in January 2024.
ESDM recorded that the realization of the domestic market obligation (DMO) for coal in 2023 reached 213 million tons or 121 percent of the target of 177 million tons. On the other hand, ESDM targets coal production in 2024 to be around 710 million tons, with domestic supply obligations at around 181.28 million tons.
Meanwhile, national coal production in 2022 and 2021 was around 687 million tons and 614 million tons, respectively. The realization of domestic market obligations for coal in 2022 was at the level of 216 million tons and in 2021 at 133 million tons. Meanwhile, coal exports throughout 2023 reached 518 million tons, higher than the figures for 2022 and 2021 which were 465 million tons and 435 million tons respectively. “Our coal exports also increased due to the rising demand and somewhat disrupted supply of alternative energy,” said Arifin.
