China and Hong Kong: Top Destinations for Indonesian Coal Exports Through October 2023

Based on Kpler data compiled by Reuters, Indonesia exported 413 million tons of thermal coal from January to October 2023.

This export volume grew by 11.5% year-on-year (yoy) compared to January-October of the previous year, which totaled 371.08 million tons.

(Read also: Indonesian Coal Reference Price Falls for Three Consecutive Months Until October 2023)

From January to October 2023, Indonesia exported the most thermal coal to China and Hong Kong, namely 183 million tons or 44.2% of total exports.

According to Reuters, this export achievement increased by 33% (yoy), reflecting improved industrial activity in China this year. In 2022, Indonesian coal exports to China were hampered by the Covid-19 pandemic.

After China, India became the second largest buyer. During January-October 2023, Indonesia sent 82 million tons of thermal coal to India, equivalent to 20% of total exports.

Other major export destinations include the Philippines, South Korea, Malaysia, Japan, Vietnam, Taiwan, Thailand, and Bangladesh, with market shares as shown in the graph.

Reuters also noted that from January to October 2023, Indonesia controlled 50.2% of the total global thermal coal export volume. This is the highest record in the last seven years.

"The key to the growth of Indonesia's thermal coal market share is its relatively low price compared to its competitors, Australia," said Reuters on Thursday (November 9, 2023).

According to the London Stock Exchange Group (LSEG), the average price of Indonesian thermal coal (4,200 kcal/kg quality) reached US$65 per ton in 2023.

This is cheaper than the average price of Australian Newcastle thermal coal (6,200 kcal/kg quality), which reached US$184 per ton.

"Indonesia enjoys a competitive price advantage over other countries because the quality of Indonesian coal is lower than that of other countries," said Reuters.