Indonesia set to achieve all-time high coal output in CY'23

Indonesia's coal production is set to achieve a record high this year, surpassing the government's target due to robust global demand and favourable weather conditions. As of 27 December 2023, coal production has soared to an impressive 751.58 million tonnes (mnt), exceeding the initial target of 694.5 mnt.

Coal sales have also exceeded expectations, reaching 705.49 mnt, surpassing the targeted amount.

The Ministry of Energy and Mineral Resources initially forecasted a year-end production of 775.17 mnt, reflecting an 11% increase from the original target.

Despite the downturn in coal prices, the surge in coal production has been notable, driven by increased energy demands on both global and domestic fronts. This heightened demand is particularly evident in the post-COVID-19 pandemic era, where economic growth has intensified the need for energy resources. Lana Saria, the Director of Coal Business Development at the Ministry of Energy and Mineral Resources, underscores that although prices have experienced a decrease, they continue to remain relatively high. This resilience in pricing dynamics serves as a robust support for the coal industry amid evolving market conditions.

Indonesia, recognized as the world's largest thermal coal exporter, experienced a substantial 30% increase in China's coal imports from January - November 2023. The country received 199.1 mnt, constituting 46.6% of China's total coal imports, according to Chinese customs data.