Coal Production of Indonesia at 147 Million Tons in First Four Months of 2014

Indonesian Coal Statistics 2006-2013:

	2006	2007	2008	2009	2010	2011	2012	2013
Production	194	217	240	256	275	353	383	421
Export	144	163	191	198	208	272	304	349
Domestic	49	61	49	56	67	80	79	72

^{in million tons
Source: Ministry of Energy and Mineral Resources}

What drives the increase in Indonesian coal production and export?

• Coal is the dominating force in power generation. At least 27 percent of the world's total energy output and more than 39 percent of all electricity is produced by coal-fired power plants due to coal's abundance, its relatively easy and low-cost extraction, and less expensive infrastructure requirements compared to other energy resources.

• Indonesia contains abundant reserves in medium and low-quality coal. These types of coal are competitively priced on the international market (partly due to Indonesia's low labor wages).

• Indonesia's strategic geographical position towards the giant emerging markets of China and India. Demand for low quality coal from these two countries is skyrocketing as they open many new coal-fired power plants to supply electricity to their immense populations. Global coal demand is in fact estimated to exceed global coal production over the next five years, implying rising coal prices.

• Domestic coal consumption in Indonesia is relatively low. Increased national production and international demand therefore results in higher exports.
  
  

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