Indonesia May Increase Coal Production 8.3 Percent in 2012

Indonesia, the world’s largest thermal coal exporter, expects to boost output in 2012 as domestic and Asian demand rises, the chairman of the Indonesian Coal Mining Association said.

Indonesia may produce as much as 390 million tons of the fuel in 2012 to satisfy demand from Asian buyers, particularly India and China, Bob Kamandanu said today in an e-mailed statement in response to questions from Bloomberg News. The country is estimated to mine 360 million tons this year, Supriatna Suhala, the association’s executive director said in a separate phone interview.

Global coal demand is projected to rise by 2.8 percent a year to 6.18 billion metric tons in six years to 2016, boosted by China’s economic expansion, according to an International Energy Agency report on Dec. 13.

Indonesia is boosting coal and natural gas use in power stations to compensate for declining oil supplies. The country may consume 65 million to 70 million tons of coal in 2012, Kamandanu said in the statement. The country is forecast to consume 60 million this year, he said.

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net

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