The Ministry of Energy and Mineral Resources (ESDM) is optimistic about a rise in Indonesian coal exports for the remainder of 2024, driven by the approaching winter seasons in its two largest export markets, China and India. According to Statistics Indonesia (BPS), coal export volumes reached 32.66 million tons in June 2024, a 3.06% decline from 33.69 million tons in May 2024. The value of these exports stood at USD 2.49 billion in June 2024, a slight decrease of 0.36% from USD 2.5 billion in May 2024. Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal at ESDM, explained that the decline in exports from May to June 2024 was attributed to reduced demand from China, falling coal prices, and lower production in Indonesian mines due to high rainfall in Kalimantan during May and June. India, Indonesia’s second-largest coal consumer after China, also experienced reduced coal demand due to its rainy season, secure coal stockpiles, and domestic production increases aimed at achieving self-sufficiency.
Rita noted that China’s current summer season, which began in June and will last until August, has decreased coal usage for heating, while optimal operation of hydropower plants has further reduced demand. In India, the rainy season and a focus on increasing domestic coal production have also impacted coal import needs. Despite these challenges, Rita expressed confidence that coal prices could rise again as China and India enter their winter seasons. The government continues to play an active role in boosting coal exports through production control and domestic supply monitoring, aiming to enhance export performance.
