REPUBLIKA.CO.ID, JAKARTA -- The government will limit its coal production to 425-450 million tons per year in the coming years, Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources R Sukhyar said here Thursday.
He added that the government was also committed to utilizing coal for the long term requirements of the communities.
"The move to impose limits on coal production is aimed at preserving the reserves, so that even our grandchildren can use it," Sukhyar said.
According to him, with the maximum coal production ranging between 425 and 450 million tons, it is estimated that the country will exhaust its coal reserves in 100 years.
However, the government will not stop exporting coal.
"We will just reduce the exports to meet our domestic needs, while the production will continue," Sukhyar added.
He explained that the control on coal production was in accordance with the National Energy Policy's (KEN 's) mandate to decrease exports and optimize the utilization of coal for domestic needs.
"The government will prioritize domestic needs over exports. If there is an emergency, then priority will be given to domestic requirements," Sukhyar said.
Another advantage of limited production will be the stability of price. The price of coal will not go down if there is no over production. Controlled production will also preserve the environment.
The government targets the production of 390 million tons of coal in the current year, while the production target for 2015 is 425 million tons.
The current coal price is declining at US$60 per ton from that of the previous year, which was US$100 per ton.
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