The Indonesian government has increased its 2020 target on thermal coal overseas shipments and said that it would meet the production goal this year. However, exports and output this year are expected to be lower than last year due to the COVID-19 pandemic which slowed down coal demand and mining activity.
The government's coal export target was raised to 435 million tons from the previous goal of 395 million tons, but it remained lower than 456.4 million tons exports last year. Production is set to reach 550 million tons this year, the government said, lower than last year's output of 616 million tons.
The government's latest projection was based on larger-than-expected coal production during the first five months of 2020. Coal output during the period reached 228 million tons, more than 40% of the 2020 target. However, it also suggests that production will fall by 6.5 million tons/month or 45.6 million in total during the rest of 2020.
Indonesia eyes Vietnam, Pakistan, and Bangladesh for new coal markets to offset declining domestic demand due to the coronavirus pandemic. The government is working to improve the efficiency of the coal supply chain while reducing dependence on Chinese and Indian markets.
