Coal in Indonesia

Coal supplies a large share of energy in Indonesia. The world's largest coal exporter, the country plays a significant role in the global coal market, primarily serving Asian countries such as China, India and Japan. Coal kills thousands of people each year.

History

Mining started in 1849.[1]

Mining and exports

As of 2019, Indonesia exported 506 million short tons of coal, making up 32% of the world's coal exports. The country's coal production surged to a record 679 million short tons in 2019, a 12% increase from the previous year. This spike in production led to a drop in prices, prompting the government to set a production cap of 606 million short tons in 2020.[2][3]

Domestically, Indonesia implemented a Domestic Market Obligation (DMO), requiring mining companies to allocate 25% of their production for local use at a fixed price of $70 per ton. However, due to a reduction in domestic demand in 2020, the Indonesian Coal Mining Association requested a temporary suspension of the DMO.[2]

Indonesia's coal reserves are substantial, estimated to last over 80 years, with significant deposits located in South Sumatra, East Kalimantan, and South Kalimantan. The country has been focusing on increasing exploration and production, which grew by approximately 105% from 2010 to 2020, driven by robust demand in Asia.[2][4]

Indonesia is the world's largest coal exporter.[5] Due to the energy transition and political split between Russia and the West over Ukraine, Russia is increasingly orienting its exports towards Asia, providing stiffer competition for Indonesia.[6]

Electricity generation

As of 2025 the country is building more coal-fired power plants.[7][8]

Death and disease

International Institute for Sustainable Development says over 7 thousand early deaths per year.[9] But a more recent projection from the Centre for Research on Energy and Clean Air projects over 150 thousand early deaths between 2026 and 2050 due to air pollution in Indonesia from coal power plants.[10] Mining can cause black lung disease.[11] Dust may cause acute respiratory infection.[12]

Environmental impact

Coal mining causes deforestation in Kalimantan. According to Greenpeace, coal plants in Indonesia reduce fishing catches.[13]

Phase-out

See also: Indonesia Just Energy Transition Partnership

In terms of environmental goals, Perusahaan Listrik Negara (PLN), the state electricity company, has plans to phase out coal-powered plants by 2056 to achieve carbon neutrality.[5] Before ceasing new coal power plant constructions after 2023, PLN will complete an additional 42 GW of coal-fired capacity. Furthermore, PLN has started co-firing biomass with coal in 17 power plants to reduce carbon emissions.[2]

The Indonesian coal industry is rather fragmented. Output is supplied by a few large producers and a large number of small firms. Top 10 Coal Companies in Indonesia in the industry include the following:[14][15]

  1. PT Bumi Resources Tbk (BUMI)
  2. Sinar Mas Mining Group
  3. PT Adaro Energy Tbk (ADRO)
  4. PT Indika Energy Tbk (INDY)
  5. PT Bayan Resources Tbk (BYAN)
  6. PT Bukit Asam Tbk (PTBA)
  7. PT BlackGold Group
  8. PT Golden Energy Minerals Tbk (GEMS)
  9. PT Kideco Jaya Agung
  10. PT Multi Harapan Utama

Coal bed methane

This section is an excerpt from Energy in Indonesia § Coal bed methane.[edit]

With 453 trillion ft3 (12.8 trillion m3) of coal bed methane (CBM) reserve mainly in Kalimantan and Sumatra, Indonesia has potential to redraft its energy charts as United States with its shale gas. With low enthusiasm to develop CBM project, partly in relation to environmental concern regarding emissions of greenhouse gases and contamination of water in the extraction process, the government targeted 8.9 million ft3 (250 thousand m3) per day at standard pressure for 2015.[16]

References

  1. ^ "A just coal transition in Indonesia: actors, framings and future directions" (PDF). Stockholm Environment Institute.
  2. ^ a b c d "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-04-25.
  3. ^ "The dirtiest fossil fuel is on the back foot". The Economist. 2020-12-03. ISSN 0013-0613. Retrieved 2020-12-13.
  4. ^ Cahyafitri, Raras (December 31, 2013). "Coal miners to boost production". The Jakarta Post. Retrieved 2023-03-24.
  5. ^ a b Apriliyanti, Indri Dwi; Nugraha, Diwangkara Bagus; Kristiansen, Stein; Overland, Indra (2024-12-01). "To reform or not reform? Competing energy transition perspectives on Indonesia's monopoly electricity supplier Perusahaan Listrik Negara (PLN)". Energy Research & Social Science. 118 103797. doi:10.1016/j.erss.2024.103797. ISSN 2214-6296.
  6. ^ Overland, Indra; Loginova, Julia (2023-08-01). "The Russian coal industry in an uncertain world: Finally pivoting to Asia?". Energy Research & Social Science. 102 103150. Bibcode:2023ERSS..10203150O. doi:10.1016/j.erss.2023.103150. ISSN 2214-6296.
  7. ^ Aldhous, Story by Nicholas Kusnetz, data analysis by Peter (2025-10-19). "China Helped Indonesia Build One of the World's Biggest, Youngest Coal Fleets. It's Still Growing". Inside Climate News. Retrieved 2026-03-04.{{cite web}}: CS1 maint: multiple names: authors list (link)
  8. ^ Monitor, Global Energy; CREA; E3G; Finance, Reclaim; Club, Sierra; SFOC; Network, Kiko; Europe, C. a. N.; Groups, Bangladesh; Asia, Trend; PRIED; Sustentable, Chile; POLEN; Arayara; Bankwatch (2025-04-02). "Boom and Bust Coal 2025". {{cite journal}}: Cite journal requires |journal= (help)CS1 maint: numeric names: authors list (link)
  9. ^ "Taxing Coal to Hit the Goals: A simple way for Indonesia to reduce carbon emissions | International Institute for Sustainable Development". www.iisd.org. Retrieved 2026-03-04.
  10. ^ "Toxic Twenty: Unmasking Indonesia's most toxic coal-fired power plants". Centre for Research on Energy and Clean Air. 2025-11-04. Retrieved 2026-03-04.
  11. ^ Akbar, Kurnia Ardiansyah; Kallawicha, Kraiwuth (2024-11-01). "Black Lung Disease among Coal Miners: First Ever Evidence from Indonesia's National Coal Production Report". Aerosol and Air Quality Research. 24 (12) 240161. doi:10.4209/aaqr.240161. ISSN 2071-1409.
  12. ^ "The Relationship Between Exposure to Coal Dust Levels and Acute Respiratory Infection: A Literature Review".
  13. ^ The True Cost of Coal Archived 30 November 2008 at the Wayback Machine Greenpeace 27 November 2008
  14. ^ Cahyafitri, Raras (August 5, 2013). "Coal miners sell more in first half, but profits remain stagnant". The Jakarta Post. Retrieved 2023-03-24.
  15. ^ Team, InvestinAsia (2024-01-01). "Top 10 Coal Companies in Indonesia". Blog - InvestinAsia. Retrieved 2024-04-25.
  16. ^ Hadiwijoyo, Rohmad (April 21, 2014). "CBM could redraft Indonesia's energy charts". The Jakarta Post. Retrieved 2023-03-24.
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