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8 Largest Coal Mines in Indonesia, from Sumatra to Papua

8 Largest Coal Mines in Indonesia, from Sumatra to Papua

Indonesia is one of the largest coal producing countries in the world.--

By mid-November 2024, national coal production reached 711.37 million tons, exceeding the government's target of 710 million tons for this year.

The coal sector alone contributed approximately 100 trillion rupiah to Non-Tax State Revenue (PNBP) in 2023. Furthermore, this industry has created more than 330,000 jobs and allocated approximately 2.5 trillion rupiah to community empowerment programs around mining areas.

Although production has exceeded targets, challenges remain in the coal export market. The Ministry of Energy and Mineral Resources (ESDM) stated that the government is encouraging export market diversification to developing countries in Africa, South Asia, and Southeast Asia that still rely on fossil fuels.

This move is a response to a World Bank report predicting a decline in coal consumption starting in 2025 and expected to further accelerate in 2026.

This prediction is based on projected declining demand from China, Europe, and the United States (US).

According to the World Bank, the decline in coal demand in 2026 is due to the increasing use of renewable energy (NRE) and natural gas-based power plants, replacing coal-based power plants.

 

Putri Nurhidayati

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