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Coal production in Indonesia 2009-2019

The production of coal in Indonesia had seen a steady rise over the past decade and reached over 15 exajoules in 2019. In order to support its economic development, as well as achieving an electrification rate of 100 percent, the Indonesian government had focused on the production of coal to meet this goal.

Government plans for the coal industry

Most of the coal produced in Indonesia was exported, mainly to China and India. However, in order to distribute electricity all over the country, the Indonesian government introduced a policy of domestic market obligation, whereby at least 25 percent of every coal company’s production must be sold domestically. This was intended for domestic electricity consumption, and the allocated coal would mostly be bought by PLN, the state-owned electricity provider. In order to not be dependent on the global coal price and thus jeopardize the government's plan for a nationwide power supply, a fixed price of 70 U.S. dollars per ton of coal sold domestically was set. The existing coal reference price , based on market prices, will be applied if it falls below 70 dollars, capping any potential advantages for the coal sellers.

Coal producers

In 2018, about 557 million metric tons of coal had been produced in Indonesia. The largest coal producer, Bumi Resources, accounted for about 15 percent of the production, followed by Adaro and Delta Dunia with ten and seven percent respectively.

Coal production in Indonesia from 2009 to 2019

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Source

Release date

June 2020

Region

Indonesia

Survey time period

2009 to 2019

Supplementary notes

This statistic refers to commercial solid fuels only, i.e. bituminous coal and anthracite (hard coal), lignite and brown (sub-bituminous) coal, and other commercial solid fuels. Includes coal produced for Coal-to-Liquids and Coal-to-Gas transformations.

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Statistics on "Coal industry in Indonesia"

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