Indonesian coal production is expected to fall to the lowest level since 2012. Poor weather conditions are responsible for lower production and delays in shipments.
Indonesian coal production declined to 36.5m tonnes in August, down 1.5% m-o-m and down 3.2% y-o-y. Despite that, Indonesian coal production increased to 288.2m tonnes over the first 8 months of the year, up 19.6m tonnes or 7.3% y-o-y. However, on an annualised basis the coal output is estimated to reach 430m tonnes in 2017. This is well below the output in 2015 and 2016 461m tonnes and at 455m tonnes respectively.*
Indonesian coal miners suffered delays in production and shipments due to persisting rains. Some coal miners were forced to declare force majeure others will miss their annual production target. The weather conditions are expected to humper to production for the remaining of the year.
Source: Ministry of Energy and Mineral Resources
* Indonesian Ministry of Energy and Mineral Resources