Coal in Indonesia
From Wikipedia, the free encyclopedia
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.
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
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]
