Indonesian Coal is Predicted to Dominate in 2023

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The CHAIRMAN of the Indonesia Mining & Energy Forum (IMEF) Singgih Widagdo predicts that coal production in Indonesia will remain high and dominate in 2023. This is due to the still high global reference price of coal and the energy transition which may not take place next year.

“I see that coal will still dominate in 2023. Even though coal prices have declined, I see this price decline is still high. The price has increased sharply from 2020 until now. If you look at the coal reference price, in November 2022 it will still tend to be high or still at US$308.2 per ton,” he said at the Core Economic Outlook 2023 event, Wednesday (23/11). Furthermore, Singgih assesses that the government will still impose exports on coal commodities going forward. This is because tax revenue from coal is said to be still very high. In addition, the government is said to have raised its coal production target in 2023, namely to reach 694 million tons. For domestic needs alone, only around 165 million tons are needed for electricity and other industries.

“In 2023 coal will be positioned as a commodity to boost state revenue. The coal market in the Pacific and Atlantic will remain high. So India and China will still be our main coal markets,” said Singgih. In addition, Singgih hopes that the government will immediately implement the Coal Public Service Agency in early 2023. In this way, the reliability of domestic electricity and PLN’s basic production costs can be well maintained. (OL-14)

Also read the 2023 coal price prediction.

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