PT Indika Energy Tbk (INDY) actually reported a decline in annual coal production, in line with the company's efforts to diversify and reduce its dependence on the coal sector.
During the first half of 2024, INDY produced 14.9 million tons of coal, a slight decrease from 15 million tons in 2023.
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8. PT INDO TAMBANGRAYA MEGAH TBK (ITMG)
Another coal company, PT Indo Tambangraya Megah Tbk (ITMG), also recorded a 13.41% increase in production in the first half of 2024.
This company, part of the Banpu Group, achieved total production of 9.3 million tons, up from 8.2 million tons in the same period last year.
Coal Production in Indonesia
Coal production in Indonesia has continued to increase in recent years, reaching a record high of 775,182 tons in 2023. The following are statistics on the development of domestic coal production:
- 2020: Indonesian coal production reached 564 million tons
- 2021: Indonesian coal production reached 614 million tons
- 2022: Indonesian coal production reached 687 million tons
- 2023: Indonesian coal production reached 775,182 tons
By mid-November 2024, national coal production reached 711.37 million tons, exceeding the government's target of 710 million tons for this year.
The coal sector alone contributed approximately 100 trillion rupiah to Non-Tax State Revenue (PNBP) in 2023. Furthermore, this industry has created more than 330,000 jobs and allocated approximately 2.5 trillion rupiah to community empowerment programs around mining areas.
Although production has exceeded targets, challenges remain in the coal export market. The Ministry of Energy and Mineral Resources (ESDM) stated that the government is encouraging export market diversification to developing countries in Africa, South Asia, and Southeast Asia that still rely on fossil fuels.
This move is a response to a World Bank report predicting a decline in coal consumption starting in 2025 and expected to further accelerate in 2026.