Coal production in Indonesia 2014-2023
The production of coal in Indonesia had seen a steady rise over the past decade and reached almost 16 exajoules in 2023. 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 on coal, 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 2022, Indonesia's coal production reached over 687 million metric tons, showing an increase in comparison to the previous year. Experiencing a significant increase in the same year, Delta Dunia became the largest Indonesian coal producer in 2022, accounting for about 12.6 percent of the total production, followed by Bumi Resources and Adaro with 10.5 and 9.2 percent, respectively.