REPUBLIKA.CO.ID, JAKARTA -- Indonesia set a target of exporting a minimum of 350 million tonnes of coal next year, higher than the expected exports of some 320 million tonnes in 2014.

The country's coal production was expected to reach 460 million tonnes in 2015, Director General of Minerals and Coal of the Ministry of Energy and Mineral Resources, R. Sukhyar, said here on Tuesday after meeting with Energy and Mineral Resources Minister Sudirman Said.

"Of the total production, 110 million tonnes is allocated to meet the needs of domestic consumers, while the rest will be for exports," he added.

The target was set with the assumption that domestic consumers will absorb the total allocation of 110 million tonnes. However, data from previous years show that the quota set for the domestic market was not completely absorbed, he stated.

In 2014, 95 million tonnes of coal was allocated for the domestic market, but only around 70 million tonnes is likely to be utilized. Sukhyar further noted that the coal production target of 460 million tonnes for 2015 was 35 million tonnes higher than the initial target of 425 million tonnes. 

"The production hike is aimed at increasing state revenue," he revealed.

According to the ministry official, the target of non-tax state revenue from minerals and coal was set at 40.6 trillion IDR in the 2015 budget, but it was later altered to 50.6 trillion IDR in the 2015 revised budget.

"As much as 90 percent of the 10 trillion IDR hike is expected to come from coal," he affirmed.

In view of that, the government has decided to increase coal production to 460 million tonnes. Sukhyar also pointed out that the government could not expect a hike in non-tax state revenue from coal as its price is declining.

According to data from the directorate general of minerals and coal, the reference price of coal in December 2014 is around 64 USD per tonne. The reference coal price had continued to decline as compared to the same in January 2014 when it stood at 80 USD per tonne, he said.

Sukhyar assured that the production hike had been adjusted in accordance with the environment's capacity. "We are not playing with the environment. We have calculated the hike based on the environment's capacity to support the target," he added.

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