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Indonesia thermal coal exports fall 23% amid demand shifts
The decline reflects Asia’s move from gas to coal as the Middle East crisis tightens LNG supply, alongside Indonesia’s production quotas and policy uncertainty.
OilPrice reports that Indonesia, the world’s largest exporter of thermal coal, has seen its thermal coal exports fall 23% this year.
The outlet links the weaker export performance to government production quotas in Indonesia and heightened uncertainty around the country’s policy for the coal mining and exporting sectors.
OilPrice also attributes part of the pressure to market conditions, saying Asian buyers are switching from gas to coal because the Middle East crisis is choking LNG supply.
In the meantime, Indonesia is not benefiting from the tighter global thermal coal market despite the regional demand shift.