Coal, one of Indonesia's largest exports, remains a significant pillar of the country's energy security and economic development, said Hendra Sinadia, executive director of the Indonesian Mining Association, at a market summit on February 27.

Indonesia's coal production increased 12.8% on the year to 775.18 million tonnes in 2023, hitting a new record. This was further surpassed in 2024, with production reaching 834 million tonnes, Sinadia highlighted during the 2^nd China Coal Import International Summit 2025 in Guangzhou.

Despite production exceeding the target of 710 million tonnes by 18% last year, the actual production was still lower than the approved 922 million tonnes in the Work and Budget Plan (RKAB).

In fact, over the past five years, the actual production consistently surpassed the initial target but was lower than the approved volume in RKBA. Sinadia noted that the estimated production set by the government in 2025 and 2026 is still lower than the approved volume in RKAB.

The Ministry of Energy and Mineral Resources sets annual coal production targets based on the review of the proposed RKAB. Effective in 2024, the government approval on RKAB is granted for 3 years, from 2024–2026.

Approximately 883 coal miners have submitted their RKAB, with production targets granted for 917.16 million tonnes in 2025 and 902.97 million tonnes in 2026.

Indonesia's coal exports remained on a positive trend, according to Sinadia. Exports in 2024 reached 490 million tonnes, surpassing 460 million tonnes in 2023, although the figure was still below a record high of 497 million tonnes in 2022.

The average monthly coal exports were about 40.8 million tonnes last year, up from around 38.3 million tonnes in 2023, with the highest and lowest period of exports for both recorded respectively in December and January.

China remained the largest destination for Indonesia's coal exports in 2024, with shipments approaching 242 million tonnes, accounting for 43.34% of the country's total coal exports. India followed, with deliveries exceeding 100 million tonnes, occupying nearly 20% of the total.

Additionally, ASEAN countries have also become significant markets, with Indonesia's coal exports to these nations surpassing those to India.

It is worth mentioning that Indonesia's domestic coal consumption has been gradually increasing over the past three years, mainly from the processing and refining nickel facilities (smelter), Sinadia said.

The Indonesian government announced that the use of the country's domestic reference price, known as the Harga Batubara Acuan (HBA), would be more reflective of the realization of prices formed in the field, and thus has encouraged all coal exporters to use HBA as their export prices.

Ending with the speech, Sinadia said that Indonesian coal miners face several challenges, including the ongoing downtrend in coal prices and higher operational costs.

Increased tax and financial obligations, higher tax rate on mining rights, the policy of mandatory 100% retention of import revenue domestically for at least a year, which will be also effective from March 1, and the obligation of B40 biodiesel will weigh further on miners.