In 2023, Indonesia's coal production surged by 12%, and coal exports increased by 10%, as reported by S&P Global Platts. This led to record-breaking figures in both production and exports, reaching 775.2 million tons and 508.0 million tons respectively, marking historical highs in statistical observations. The majority share of coal for power generation in Indonesia's solid fuel exports exceeded 95%, emphasizing the pivotal role of coal-fired power plant dynamics in Indonesia's export supply. Globally, coal-fired power generation increased by 1.6% in 2023, reaching 10,613 terawatt-hours (TWh), a historic high, according to the International Energy Agency (IEA). In the Asia-Pacific region, a key destination for coal exporters, coal-fired power generation saw a 2.5% increase (from 8,196 TWh to 8,675 TWh). Notably, China and India accounted for 64% (324.1 million tons) of Indonesia's coal exports in 2023, underscoring their dominance as major importers. China and India continued to lead global infrastructure development in coal-fired power plants. Global Energy Monitor reported that China contributed 66% of new coal-fired power plants worldwide (17.0 GW out of 25.9 GW) in the first half of 2023, with India contributing 12% (3.1 GW).

The increase in Indonesia's exports was not only propelled by geographical proximity to major markets but also by the relatively low cost of local raw materials. For instance, the average price of delivering coal for power generation from the port of Banjarmasin in Indonesia was $63.1 per ton in 2017. By 2023, this price remained nearly three times lower than coal shipments from the port of Newcastle in Australia ($172.8 per ton), one of the largest coal centers in the Asia-Pacific. The quality disparity between Indonesian and Australian raw materials, characterized by lower calorie content and higher moisture content in Indonesian coal, contributed to this price difference. S&P Global Platts reported an average calorie value of 3,800 kilocalories per kilogram (kcal per kg) for coal shipped to Banjarmasin, compared to 5,500 kcal per kg for coal exported from Newcastle. Indonesian and Australian coal had moisture contents of 38% and 10% respectively, affecting fuel efficiency in power plants. Nevertheless, Indonesia remains the world's largest exporter of coal for power generation. Initial estimates by the IEA indicate that Indonesia's share of global coal exports reached 44% in 2023, with Australia and Russia contributing 18% and 15% respectively.

Source: https://www.kalbarnews.co.id/2024/02/ekspor-batu-bara-indonesia-mencapai.html