Indonesia Coal Market

Detailed research report on Indonesia's coal market, featuring market analysis, industry trends, size, and forecast from 2025 to 2030.

The Indonesia Coal Production Market is segmented by Application (Electricity, Iron and Steel Industry, and Other Applications). The report offers the market size and forecasts for Indonesia Coal Market in revenue (USD Billions) for all the above segments.

Indonesia Coal Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Indonesia Coal Market Size

Indonesia Coal Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Historical Data Period 2020 - 2023
CAGR 6.00 %
Market Concentration Low

Major Players

Indonesia Coal Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Indonesia Coal Market with other markets in Energy & Power Industry

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Indonesia Coal Market Analysis

The Indonesia Coal Market is expected to register a CAGR of greater than 6% during the forecast period.

Indonesia's coal industry demonstrated remarkable resilience and growth in 2023, with the Ministry of Energy and Mineral Resources setting an ambitious production target of 694 million tons, representing a 5% increase from the previous year. The country's strategic position in the global coal market has been further strengthened by its record-breaking export targets, with projections reaching 518 million tonnes for 2023. This expansion in production capacity has been supported by significant infrastructure developments, including the ongoing construction of 18.84 GW of coal-fired power capacity as of January 2023, highlighting the country's commitment to maintaining its position as a leading global coal producer.


The role of coal energy in Indonesia's energy landscape has become increasingly prominent, with its share in the national energy mix rising to 64% in March 2023 from 61% in 2022. This growth has been accompanied by substantial investments in the coal mining sector, with Foreign Direct Investment (FDI) reaching USD 5.1 billion in 2022. The government's continued support through policies such as the Domestic Market Obligation (DMO) has helped maintain a balance between export opportunities and domestic supply security, ensuring stability in both markets while promoting sustainable industry growth.


The international trade dynamics of Indonesia's coal sector have undergone significant transformation, particularly in response to global geopolitical shifts. A notable development has been the dramatic increase in coal exports to the European Union, which surged by 1,373% in 2022 compared to the previous year, as European nations sought alternatives to Russian energy supplies. This diversification of export markets has helped Indonesia establish new trade relationships while maintaining its strong presence in traditional Asian markets, demonstrating the sector's adaptability to changing global demand patterns.


The industry is witnessing a gradual shift toward more sustainable practices and technological innovation. In February 2023, the Indonesian Ministry of Energy and Mineral Resources introduced a mandatory emissions trading system for the power generation sector, covering 99 coal-fired power plants that account for 81.4% of the country's national power generation capacity. This initiative, coupled with increasing investments in clean coal technologies and co-firing projects, reflects the industry's adaptation to environmental concerns while maintaining operational efficiency. The sector is actively exploring biomass co-firing and other innovative technologies to reduce its environmental impact while maintaining its crucial role in the country's energy security.

Segment Analysis: By Domestic Market

Power Sector Segment in Indonesia Coal Market

The power sector continues to dominate Indonesia's domestic coal market, commanding approximately 86% of the total market share in 2024. This substantial market position is primarily driven by Indonesia's heavy reliance on coal for electricity generation, with coal-fired power plants accounting for around 55% of the country's total installed capacity. The sector's dominance is further reinforced by the government's ongoing support through various policies, including the Domestic Market Obligation (DMO), which ensures priority coal supply to state-owned utility PLN at regulated prices. The implementation of biomass co-firing technology across 32 coal-fired power plants and the exploration of novel co-firing technologies, such as green ammonia integration in new power units, demonstrates the sector's commitment to maintaining coal usage while addressing environmental concerns.

Market Analysis of Indonesia Coal Market: Chart for By Domestic Market

Cement Industries Segment in Indonesia Coal Market

The cement industries segment is projected to exhibit the strongest growth trajectory in the Indonesian coal market, with an expected growth rate of approximately 8% during the forecast period 2024-2029. This robust growth is primarily driven by Indonesia's ambitious infrastructure development initiatives, particularly the construction of the country's new capital at Nusantara. The Bandung Institute of Technology's projection of a 33% increase in cement consumption, coupled with the expansion plans of major cement manufacturers and favorable domestic coal costs, is expected to sustain this growth momentum. The sector's evolution is also marked by technological advancements and environmental considerations, with companies increasingly exploring innovative solutions such as fly ash utilization and cement-free concrete alternatives to balance growth with sustainability objectives.

Remaining Segments in Domestic Market

The metallurgical industries and other applications segments complete the domestic coal market landscape in Indonesia. The metallurgical sector maintains its position as a crucial consumer of high-quality coking coal, supported by ongoing investments in new steel production facilities and the government's push for domestic steel manufacturing capabilities. The other applications segment, encompassing paper industries, textile manufacturing, and domestic usage, continues to play a supplementary role in the market. These segments are experiencing varying degrees of transformation as they adapt to environmental regulations and explore alternative energy sources, while still maintaining coal as a primary energy source for their operations.

Segment Analysis: International Market

Chinese Market Segment in Indonesia Coal Exports

China continues to maintain its position as the dominant destination for Indonesian coal exports, commanding approximately 45% of the total export volume in 2024. The strong bilateral trade relationship between Indonesia and China has been reinforced by China's sustained demand for high-quality thermal coal to power its extensive industrial and power generation sectors. Indonesia's strategic geographical location, competitive pricing, and the high calorific value of its coal products have made it an ideal supplier for China's energy needs. The trade dynamics are further strengthened by established shipping routes, efficient port infrastructure, and long-term supply agreements between Indonesian mining companies and Chinese power utilities and industrial coal consumers.

European Union Market Segment in Indonesia Coal Exports

The European Union has emerged as one of the fastest-growing markets for Indonesian coal exports, driven primarily by ongoing energy security concerns and the need to diversify supply sources. The region's strategic shift away from Russian coal imports has created significant opportunities for Indonesian exporters to expand their presence in the European market. This growth trajectory is supported by Indonesia's ability to provide reliable coal supplies, competitive pricing structures, and the adaptability of Indonesian mining companies to meet European quality standards and environmental requirements. The market expansion is further facilitated by improved logistics networks, enhanced trade agreements, and the Indonesian government's supportive export policies.

Remaining Segments in International Coal Market

Beyond China and the European Union, Indonesia's coal export market is well-diversified across several key regions, including India, Southeast Asian nations, Japan, and South Korea. India represents a significant market share as the second-largest destination, while Southeast Asian countries like the Philippines and Malaysia continue to be important consumers due to their growing energy needs and proximity to Indonesian ports. Japan and South Korea maintain steady demand for Indonesian coal, particularly for their steel manufacturing and power generation sectors. These markets collectively provide stability to Indonesia's export portfolio and help maintain its position as a leading global coal supplier.

Indonesia Coal Industry Overview

Top Companies in Indonesia Coal Market

The Indonesian coal market is dominated by established players like PT Adaro Energy, PT Bumi Resources, PT Indo Tambangraya Megah, and PT Indika Energy, who have demonstrated strong operational capabilities through strategic initiatives. These companies are increasingly focusing on technological innovation, particularly in the digitalization of coal mining operations, the implementation of advanced coal extraction techniques, and the adoption of sustainable mining practices. The industry has witnessed significant investments in infrastructure development, including port facilities and transportation networks, to enhance operational efficiency. Companies are diversifying their product portfolios by expanding into different coal grades, from high-calorie thermal coal to metallurgical coal, while simultaneously exploring value-added opportunities like coal gasification. Market leaders are also strengthening their position through vertical integration, establishing robust supply chain networks, and developing strategic partnerships across the value chain.

Local Players Dominate Consolidated Market Structure

The Indonesian coal market exhibits a relatively consolidated structure dominated by domestic conglomerates with strong government relationships and extensive local operational expertise. These established players control significant mining concessions across key coal-producing regions like Kalimantan and Sumatra, creating high entry barriers for new entrants. The market has witnessed notable merger and acquisition activities, particularly with companies seeking to expand their resource base and achieve economies of scale. Foreign players, while present in the market, typically operate through joint ventures or strategic partnerships with local entities, reflecting the importance of local market knowledge and regulatory compliance.


The industry landscape is characterized by vertical integration, with major players expanding across the value chain from coal mining operations to logistics and coal trading activities. Recent market developments indicate a trend toward consolidation, with larger players acquiring smaller mining operations to strengthen their market position and resource base. The competitive dynamics are further shaped by the government's domestic market obligation policies, which influence supply arrangements and market strategies of key players. Companies are increasingly focusing on developing downstream capabilities and exploring clean coal technologies to maintain their competitive edge.

Innovation and Sustainability Drive Future Success

Success in the Indonesian coal market increasingly depends on companies' ability to balance operational efficiency with environmental sustainability and technological innovation. Incumbent players must focus on developing clean coal technologies, implementing digital transformation initiatives, and optimizing their mining operations through advanced technologies like IoT and automation. Market leaders need to diversify their product offerings, strengthen their export capabilities, and develop value-added products to maintain their competitive advantage. Additionally, companies must build strong relationships with key stakeholders, including government bodies and local communities, while maintaining robust environmental, social, and governance (ESG) practices.


For new entrants and smaller players, success lies in identifying niche market segments, developing specialized product offerings, and forming strategic partnerships with established players. Companies must invest in sustainable mining practices and clean coal technologies to address growing environmental concerns and regulatory requirements. The ability to adapt to changing market dynamics, including fluctuating global demand patterns and evolving regulatory frameworks, will be crucial. Future success will also depend on companies' capacity to manage supply chain risks, develop efficient logistics networks, and maintain cost competitiveness while meeting increasingly stringent environmental standards. Building strong relationships with end-users and maintaining flexibility in production capabilities will be essential for long-term success in the market.

Indonesia Coal Market Leaders

  1. PT Adaro Energy Tbk

  2. PT Bumi Resources Tbk

  3. PT Bayan Resources Tbk

  4. PT Indo Tambangraya Megah Tbk

  5. PT Bukit Asam Tbk

  6. *Disclaimer: Major Players sorted in no particular order
Indonesia Coal Market Concentration
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Indonesia Coal Market News

  • In November 2022, the Indonesian government announced that they would allow the construction of new coal plants, with a combined capacity of 13 gigawatts, that have already been tendered out. The plan is laid out in the country's 10-year energy plan for 2021-2030.
  • In November 2022, the Asian Development Bank and a private power firm announced that they were teaming up to refinance and prematurely retire a coal-fired power plant. The 660-megawatt Cirebon 1 power plant in West Java would be refinanced in a USD 250 million to USD 300 million deal on the condition that it be taken out of service 10 to 15 years before its end 40- to 50-year useful life under a memorandum of understanding.

Indonesia Coal Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Scope of the Study
  • 1.2 Market Definition
  • 1.3 Study Assumptions

2. EXECUTIVE SUMMARY

3. RESEARCH METHODOLOGY

4. MARKET OVERVIEW

  • 4.1 Introduction
  • 4.2 Market Size and Demand Forecast in USD billion, till 2028
  • 4.3 Recent Trends and Developments
  • 4.4 Government Policies and Regulations
  • 4.5 Market Dynamics
    • 4.5.1 Drivers
    • 4.5.2 Restraints
  • 4.6 Supply Chain Analysis
  • 4.7 PESTLE Analysis

5. MARKET SEGMENTATION

  • 5.1 Application
    • 5.1.1 Electricity
    • 5.1.2 Iron and Steel Industry
    • 5.1.3 Other Applications

6. COMPETITIVE LANDSCAPE

  • 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
  • 6.2 Strategies Adopted by Leading Players
  • 6.3 Company Profiles
    • 6.3.1 PT Adaro Energy Tbk
    • 6.3.2 PT Bumi Resources Tbk
    • 6.3.3 PT Indo Tambangraya Megah Tbk
    • 6.3.4 PT Bukit Asam Tbk
    • 6.3.5 PT Bayan Resources Tbk
    • 6.3.6 BlackGold Group
    • 6.3.7 Golden Energy and Resources Limited
    • 6.3.8 PT Bhakti Energi Persada
    • 6.3.9 Adani Group
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Indonesia Coal Industry Segmentation

Coal is a sedimentary deposit primarily constituted of carbon and readily combustible. Coal is black or brownish-black in color and contains more than 50% carbonaceous material by weight and more than 70% by volume (including inherent moisture). It comprises plant remains compacted, hardened, chemically changed, and metamorphosed by heat and pressure throughout geologic time. Coal can be found throughout the globe. However, it is most common in areas where prehistoric forests and marshes formerly flourished before being buried and compressed over millions of years.

The market is segmented by Electricity, Iron and Steel Industry, and Other Applications. The report offers the market size and forecasts for Indonesia Coal Market in revenue (USD Billions) for all the above segments.

Application Electricity
Iron and Steel Industry
Other Applications
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Indonesia Coal Market Research FAQs

What is the current Indonesia Coal Market size?

The Indonesia Coal Market is projected to register a CAGR of greater than 6% during the forecast period (2025-2030)

Who are the key players in Indonesia Coal Market?

PT Adaro Energy Tbk, PT Bumi Resources Tbk, PT Bayan Resources Tbk, PT Indo Tambangraya Megah Tbk and PT Bukit Asam Tbk are the major companies operating in the Indonesia Coal Market.

What years does this Indonesia Coal Market cover?

The report covers the Indonesia Coal Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Coal Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Indonesia Coal Market Research

Mordor Intelligence provides a comprehensive analysis of the coal industry. We leverage extensive expertise in fossil fuel markets and a deep understanding of coal mining operations. Our research covers various coal types, including anthracite, lignite, bituminous coal, and coking coal. We offer detailed insights into coal preparation and coal processing methodologies. The report addresses crucial aspects of coal extraction technologies and solid fuel applications. It also explores emerging trends in coal gasification and coal liquefaction.

Stakeholders gain valuable insights into thermal coal and metallurgical coal markets through our detailed analysis, available as an easy-to-download report PDF. The research examines industrial coal applications and steam coal utilization. It also covers developments in clean coal technologies, including pulverized coal systems. Our comprehensive coverage extends to coal energy production, coal power generation, and coal trading dynamics. We also explore innovations in coal chemicals and coal derivatives. The report addresses commercial coal markets, providing stakeholders with actionable intelligence for strategic decision-making.

Coal Market in Indonesia Report Snapshots