JAKARTA – PT Indika Energy Tbk (INDY) plans to produce 33 million metric ton (MT) of coal in 2016 or smaller compared with coal production in 2015 as much as 50 million MT. The decrease of coal production reflects the weakening global economy having negative implications on the global market.
President Director of PT Indika Energy Tbk M Arsjad Rasjid said the company decided to decrease coal production in response to weakening demand in the market during 2016. “After the market becomes strong, the company will increase coal production. We hope the market will be more positive next year,” he said at the company’s public expose in Jakarta.
He said they had exported as much as 70%-75% of its coal and 25% to the domestic market. Its largest export is to Asian countries such as China. The company’s coal sold domestically is sourced to power electric power plant facilities.
Deputy Director of PT Indika Energy Tbk Retina Rosabai said they still are preparing coal stock as the company’s inventory reached as much as 800 thousand MT. “Even though the company plans to decrease coal production, we still plan to export 75% to the Asian market,” she said.
Retina said some countries in Asia like Vietnam have plans to build electric power plants and provides an opportunity for coal companies to sell. “It is just a trend but we have not sold to the country yet,” she said. (LK)