Impact on production was largely due to rising operating costs against a backdrop of declining coal prices.
ICMA statistics reveal that the country’s coal output may decline another 30% to 340 million tons in 2012 due to the prevailing market conditions.
ICMA executive director Supriatna Suhala noted that prices remained low as supply exceeded demand.
"We haven’t seen signs of a recovery yet," Suhala added.
According to Deniel Candra member of ICMA the central Sumatran province of Jambi is likely export only 700,000 tons of coal in 2012 when compared to 4.2 million tons in 2011.
The global coal market downturn has also led to the closure of several mines across the nation arising from the cancelled orders from China.
Currently only 5 coal mines are under operation in the island of Sumatra when compared to the earlier 36.
