Indonesia's Coal Exports Decline in Both Volume and Value in 2025, Government Plans Production Cuts to Stabilize Prices Sparking Industry Concerns

According to the latest data released by Indonesia's Central Statistics Agency, the country's coal exports in 2025 showed a decline in both volume and value: annual coal export value was approximately $24.48 billion, a significant decrease of 19.70% year-on-year; export volume was about 390 million tons, down 3.66% compared to the previous year.

At a press conference, the agency's head stated that coal, steel and stainless steel, and palm oil remain Indonesia's core export categories, collectively accounting for 28.49% of the total non-oil and gas export value in 2025. Due to factors such as declining international coal prices, coal exports have become one of the main categories dragging down overall export performance.

Faced with downward pressure in the coal market, the Indonesian government is planning to control production to regulate supply, aiming to stabilize market prices and boost market conditions. Prior policy intentions have been announced, proposing to reduce annual coal production from approximately 780 million tons to 600 million tons.

This production reduction plan has raised widespread concerns in the coal industry. Gita Maheswari, Executive Director of the Indonesian Coal Mining Association, publicly stated that a significant cut in production will substantially increase companies' fixed operating costs. Coupled with environmental and financial pressures, it may further trigger the risk of layoffs, impacting employment and operational stability in the industry.