Clearance Sales of Primary Assets? Indonesian Coal Production and Export


The growth of global coal production and distribution was mainly due to the increasing demand of offshore power market, especially from China and India.
Coal mining in Indonesia also has skyrocketed in the last two decades. The production increased rapidly each year and become relatively stable around 2013-2016.

The 12% increase in production makes Indonesia the world’s largest thermal coal exporter since 2005 (Lucarelli, 2010).
By 2011, Indonesia surpassed Australia to get first rank in coal export volume. The export volume of 2015 which in the previous 12 years is estimated to be only below 100 million tons (EIA, 2003) has jumped fourfold.

Indonesia coal export volume become the first or second rank, but only ranked 4-6 in the production volume. While the reserves are running low, only below 20 percent of the production is used to meet domestic demand.
Without proper control of production and exports, Indonesia’s coal industry will be swayed by global market’s pricing games.


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