During President Joko Widodo’s administration, Indonesia's coal exports reached between 500 million and 600 million tons by 2023. Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed that national coal production saw a significant increase, rising from 416 million tons in 2015 to 755 million tons in 2023. Speaking at the IIGCCE event in Jakarta on Wednesday (18/9), Bahlil stated that while the majority of coal is exported, around 500 to 600 million tons, the rest is allocated for domestic needs. The Ministry of Energy and Mineral Resources reported that 2023's coal production exceeded the target of 695 million tons, reaching 775 million tons. Of this, 213 million tons were dedicated to the domestic market obligation (DMO), while 518 million tons were exported. As of 18 September 2024, coal production reached 563 million tons, with 284 million tons exported and 250 million tons utilized domestically.
The Ministry is optimistic that exports will rise by the end of 2024, supported by increased demand during winter in China and India. However, according to the Central Statistics Agency (BPS), Indonesia’s coal export volume in June 2024 dropped by 3.06% to 32.66 million tons, compared to 33.69 million tons in May 2024. Export value also decreased by 0.36%, from USD 2.5 billion in May 2024 to USD 2.49 billion in June 2024. The decline in demand from China due to a reduced need for coal during the summer, as well as India’s rainy season and efforts toward coal self-sufficiency, contributed to the lower exports. Despite these challenges, coal prices are expected to rebound as China and India enter the winter season.
