REPUBLIKA.CO.ID, JAKARTA - This year, the Ministry of Energy and Mineral Resources has downsized its coal production target to 400 million tons, lower than the production in 2013, which stood at 421 million tons.

"We have set a production target at 400 million tonnes, which is lower than the production in 2013, as we want to change our paradigm that an increase in revenue is derived from increasing production," Syukhtar, the director general for mineral and coal affairs said on Friday.

He explained that the government was keen to change its outlook that an increase in non-tax state revenues should not always come from increased production. For this purpose, the Ministry of Energy and Mineral Resources also plans to increase its supervision on the coal and mineral sector to ensure greater accuracy in reporting of production data. 

"We will streamline and improve the supervision system," he remarked.

The director general revealed that during 2013, the domestic coal consumption reached 72 million tons. Among others, coal was used for generating electricity and smelting operations. This year, the domestic coal consumption is forecast to reach 95.5 million tonnes. Sukhtar emphasized that in 2013, the non-tax revenues from the coal and mineral sector stood at 33.1 trillion IDR, up 38 percent from that in the previous year.

The implementation of the Law No. 4/2009 on mineral and coal mining, which bans the export of raw minerals, effective from January 2014, is expected to affect trade.

"The countrys exports will drop since about 62 percent of Indonesias exports are chiefly raw minerals," Minister of Trade Gita Wiryawan stated last month.

The ban on exports will also have an adverse effect on social aspects such as the employment sector, he added. Wirjawan reminded that, in essence, the implementation of the law will provide added value to Indonesia's natural resources.

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