China Became The Largest Coal Market for Indonesia in 2025

According to data from Kpler, processed by global energy transition columnist Gavin Maguire in Reuters, Indonesia will dominate the global thermal coal export market share in 2025, with a 50% share.

There are a number of countries that are major markets for Indonesian thermal coal. The largest is China, with a share of up to 42%.

This proportion is far behind India, which comes in second with a share of 19%.

Maguire noted that each country's dependence on Indonesian supplies varies.

"Major countries like China and India still largely rely on domestic mines to meet their coal needs," said Maguire in an article published on Wednesday (4/2/2026).

Next is the Philippines with a share of 7%, as well as South Korea, Malaysia, Vietnam, and Japan, each with a share of 5%.

Other countries are recorded with less than 5%, as shown in the chart.

Maguire mentioned that utility systems in various parts of Asia are struggling to address potential critical coal supply shortages after Indonesian miners—the world's largest coal producer—halted coal exports in the spot market as a form of protest against the government's plan to limit production.

In his article, Maguire reported that an Indonesian coal mining official said that contracted long-term exports would continue, but spot market shipments would be limited until there is a final decision on the government's quota.

"The official also warned that even some long-term contracts risk being disrupted as miners face unexpected conditions," wrote Maguire on Wednesday (4/2/2026).

Indonesian Government's Response

Regarding the news of production quota cuts, the Ministry of Energy and Mineral Resources (ESDM) confirmed that it has not yet issued approval for the 2021 work and budget plan (RKAB) for coal commodities this year.

According to Katadata, Director General of Minerals and Coal, Tri Winarno responded to the news that some companies have already obtained approval for the RKAB without a quota cut (0%).

However, the ESDM Ministry plans to reduce the RKAB for coal to boost its price this year. He said the circulating news is inaccurate information.

"The point is that so far, the ESDM Ministry has not issued approval for the 2026 RKAB," said Tri when met in South Jakarta on Thursday (5/2/2026).