The Indonesian Coal Mining Association (APBI) has decided to cut domestic production to 480 Mt in 2020 in a bid to increase global coal prices. The organisation forecasted Indonesian coal production to reach 530 Mt in 2020.
According to the Indonesian government, the country is expected to produce 550 Mt of coal in 2020 (down from 582 Mt in 2019), while exports should reach 435 Mt, which is 40 Mt higher than the previous target (395 Mt) but will remain lower than 2019 exports (459 Mt). As domestic coal demand is forecasted to fall from 133 Mt in 2019 to 100 Mt in 2020, Indonesia intends to increase its coal exports to Vietnam, Pakistan and Bangladesh.
Indonesian coal exports to China, India and the Philippines have been hit by the coronavirus outbreak and ongoing restrictions. Bumi, which is Indonesia’s largest coal producer, has reduced its 2020 output guidance from 94.5 Mt to 85-90 Mt.