A heavy machinery unload coal from barges into trucks to be distributed, at the Karya Citra Nusantara port in North Jakarta, Indonesia, January 13, 2022.
As Indonesia accounts for approximately half of global thermal coal exports, the reduced shipments have led to a 7% drop in worldwide thermal coal exports, totaling 23 million tons less than the previous year. If this trend continues, 2025 could see the first annual decline in Indonesian coal exports since 2020, when global health challenges disrupted production and logistics.
China, the largest coal producer and consumer, reduced its imports from Indonesia by 20%, or 14 million tons, during the first four months of 2025 compared to 2024. Increased domestic coal production and efforts to improve air quality have driven this shift. Similarly, India, the world’s second-largest coal consumer, cut its Indonesian coal imports by 15%, or 6 million tons, over the same period, focusing on boosting local coal output.
Other major markets also scaled back imports. Japan and South Korea collectively imported 13 million tons of Indonesian coal from January to April, down from 17 million tons in 2024. Taiwan, Thailand, the Philippines, Malaysia, and Pakistan also reported lower imports. A regional shift toward cleaner energy sources and a 3% decline in coal-fired electricity production across Asia in the first quarter of 2025, as reported by think tank Ember, have contributed to this trend.
An analyst from Ember noted: “Ongoing efforts to reduce coal use in power production, and the increased generation from clean energy sources instead, has likely helped trim coal demand across Asia so far this year.”
Despite the downturn, some countries increased their coal imports. Vietnam and Bangladesh set record highs for Indonesian coal imports in 2025, driven by growing energy demands. Spain, Italy, Romania, and New Zealand also reported higher imports, influenced by elevated natural gas prices, prompting a shift to coal for power generation.
The decline in Indonesia’s coal exports reflects broader market dynamics, including stronger domestic production in key markets and a regional push for sustainable energy. While some nations continue to rely on coal, the overall reduction in demand from Asia’s largest consumers suggests a potential peak in global coal export volumes, with Indonesia facing a challenging year ahead.
