JAKARTA: Coordinating Downstream and Energy Transition Minister Bahlil Lahadalia has announced that the government is considering a limited relaxation of coal production quotas after Indonesian coal prices rose to US$154 per tonne for coal with a calorific value of 6,330 kcal/kg.
Speaking after a limited cabinet meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta, Bahlil, who also serves as the Energy and Mineral Resources Minister, said the price increase presents an opportunity for Indonesia to optimise its coal production.
However, he emphasised that any output increase must balance supply and demand.
“We hope that with favourable prices, we can increase production; we are implementing a limited relaxation to maintain the supply-demand balance, while also aiming to boost our foreign exchange inflows in the near term,” Bahlil said, as reported by Bisnis.com.
The government expected the rise in coal prices to contribute more significantly to foreign exchange earnings from the mineral and coal sector.
Nevertheless, Bahlil did not specify the nature of the relaxation, the targeted increase in production volume or the timeline for the policy’s implementation. — The Jakarta Post/ANN
