Some large coal companies in Indonesia have been allowed to be exempted from the impact of the production reduction policy.
According to reports, several of the largest coal companies in Indonesia have been granted exemptions from the Indonesian government's production quota reduction policy, with the burden of production cuts mainly falling on smaller coal mines. Bumi Resources, PT Adaro Andalan Indonesia, and Indika Energy have all been granted their full coal mining quotas for this year, totaling around 170 million tons. As the world's largest exporter of thermal coal, Indonesia plans to reduce coal production by nearly a quarter to around 600 million tons this year to boost coal prices. The Indonesian Coal Mining Association stated last week that the production cuts for each mine will range from 40% to 70%, and warned that this may lead to some coal mines becoming financially unsustainable, potentially causing large-scale layoffs and loan defaults.
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