Pandu Sjahrir, Chairman of the Indonesian Coal Mining Association (APBI), said the cash-flow of around 65 percent of Indonesian coal miners is not enough to sustain their businesses, hence deciding to cut output. Reduced coal output in Indonesia should manage to boost global coal prices which are nearly touching nine-year lows on the global supply glut and slowing international demand, particularly from China. Sjahrir expects coal prices to rise slightly in 2016 to around USD $60 per ton.

Indonesia, the world's top thermal coal producer, may export between 330 and 360 million tons of coal in 2015. Meanwhile, domestic coal consumption is estimated at 90 million tons in 2015 and 100 million tons in 2016. Domestic consumption of coal is expected to grow as the Indonesian government targets to have built 35 gigawatts of new power stations, mostly coal-fired, by 2019.

Indonesian Production, Export and Consumption of Coal:

   2007  2008  2009  2010  2011  2012  2013  2014  2015¹
Production   217   240   254   275   353   412   474   458   400
Export   163   191   198   210   287   345   402   382   345
Domestic    61    49    56    65    66    67    72    76    90

¹ indicates forecast
in million tons

Source: Indonesian Coal Mining Association (APBI)

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