INTERNATIONAL, RBTVDISWAY.ID - The Indonesian coal market is currently facing challenges after three fantastic years, both in terms of price and international market demand.
Meanwhile, national coal reserves are often cited as still abundant within the country.
Since the surge in international coal prices in 2022, reaching US$400 per ton, national production has continued to climb and set records.
In 2023, coal production reached 775.2 million tons, while in 2024, production reached 836 million tons. Actual production has consistently exceeded the national target.
This condition is influenced by relatively stable international coal prices and increasing export demand, particularly from China and India.
However, entering 2025, conditions are challenging as Indonesia's two main coal export destinations are actually increasing domestic production.
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Domestically, coal plays a crucial role in energy security. National electricity remains heavily dependent on coal as fuel for coal-fired power plants (PLTU).
However, in recent years, the proportion of coal exported has tended to increase, reaching over 60 percent.
As a strategic commodity, both as a mainstay of national electricity and a source of non-tax state revenue (PNBP), coal sustainability is essential.
Are Indonesia's abundant coal reserves sufficient to meet long-term needs?
Citing data from the Geological Agency (BGA) in 2024, Indonesia's total coal resources were 97.96 billion tons, while total coal reserves were 31.95 billion tons.
Coal resources encompass the total coal deposited in the earth's crust, while reserves are the portion of these resources that can be economically mined.
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Coal resources and reserves are divided into three quality categories: low, medium, and high. Low calorie refers to 4,200 kcal/kg (gar) or less, medium calorie 4,200-5,200 kcal/kg (gar), and high calorie 5,200 kcal/kg (gar) or higher.