Coal production has already hit 48.5 million tonnes or 9% of national production in 2018.
Indonesia is expecting the upward trend of coal prices to continue until the end of the year on the back of increased global demand for the commodity, Antara News reports.
According to Rendra Prasetya Kiswono of the Coordination Function Analysis and Policy Commission of Bank Indonesia for South Sumatra, high demand for coal in the world market is in line with the onset of the winter season in mainland China. China needs adequate coal supply to generate six power plants in the face of the temperature below zero Celsius degrees.
"The price of coal is good at this time, so we recommend that this moment be used to increase the volume of exports," he told reporters.
Since the increase of coal prices in April 2018, the mining and quarrying sector in South Sumatra hit 19.90% of GDP, marking the highest contribution to the GDP. In 2018, South Sumatra’s total coal production is estimated to be at around 48.5 million tonnes or 9% of national production.
Photo by Alan Murray-Rust CC BY-SA 2.0
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