Indonesia sees record coal exports of more than 500 million tonnes in 2023

INDONESIA plans to produce 695 million tonnes of coal this year and is expecting exports of 518 million tonnes, a level that would mean record shipments out of the country.

Energy and Mineral Resources Minister Arifin Tasrif said on Monday (Jan 30) that Indonesia – the largest economy in South-east Asia – had produced 687 million tonnes of coal in 2022, of which 494 million tonnes were exported.

Production last year was higher than the target of 663 million tonnes, despite an export ban at the start of the year that caused some miners to hold back output, as well as heavy rains that disrupted operations.

According to shipping data from consultancy Kpler, Indonesia’s exports to India, South Korea, Taiwan and the Philippines all rose in 2022. Meanwhile, shipments to its biggest market, China, dipped.

Indonesia’s domestic coal consumption is estimated at 177 million tonnes in 2023, down from 193 million tonnes in 2022.

Explaining the lower estimate, Arifin said: “There are a number of efficiency programmes that we must carry out to reduce carbon emission from coal power plants.”

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Coal-fired power makes up more than 50 per cent of Indonesia’s energy supply. Last year, the government set a more ambitious target to cut emissions by 31.9 per cent on its own, or 43.2 per cent with international support, by 2030. The country also has aims to reach net-zero emissions by 2060.

Arifin said he expects coal prices to remain elevated this year after 2022’s record prices, caused by supply disruptions from the war in Ukraine.

“Coal prices are expected to still hold up well into 2023 because of global energy (supply and demand) balance problems that still need some support from coal,” he said.

Indonesia’s government-set monthly coal benchmark price peaked at US$330.97 per tonne in October 2022. It was US$305.21 per tonne this month.

Arifin also said the country consumed 10.45 million kilolitres (kl) of biodiesel made from palm oil in 2022, and that it was targeting consumption of 13 million kl this year.

The world’s top palm oil producer is expected to implement a “B35” programme in February, which would mandate that diesel fuel contains 35 per cent palm oil, up from 30 per cent currently. REUTERS