Archive · 25 Jun 2025
China, India Cut Indonesian Coal Imports for Better Grades
China and India are buying less coal from Indonesia because they are choosing higher-quality coal that gives them more energy for the same price.
This is also due to lower prices of higher-grade coal from countries like Russia, Mongolia, and Australia.
Indonesian coal exports have decreased, with domestic demand, especially from nickel smelters, becoming more important.
Indonesian miners are also turning to domestic demand to offset the decline in exports.
While this shift has decreased Indonesian coal exports, it has provided opportunities to other countries that produce higher grade coal.
China and India are decreasing Indonesian coal imports.
Higher-quality coal from other countries is more competitive.
Indonesian exports to China and India have fallen significantly.
Indonesia's domestic coal demand is rising, especially from nickel smelters.
Mongolian, South African, and Australian coal are gaining market share.
- Who
- China and India are the main importers changing their coal sourcing.
- What
- China and India are shifting to higher-grade coal, decreasing imports from Indonesia.
- When
- In the first five months of 2025.
- Where
- China, India, Indonesia, Mongolia, South Africa, Australia, Kazakhstan, Colombia, Mozambique, and Tanzania.
- Why
- Higher-quality coal provides more energy, making it more competitive with current prices. Also Indonesian coal is facing competition from other suppliers.
Indonesian Coal Miners
Chinese and Indian Buyers
Market Shifts
Indonesian Coal Miners
Focusing on domestic demand and seeking better prices than power utilities.
Chinese and Indian Buyers
Facing declining exports to major markets like China and India, the industry is adapting.
- China Coal Import Drop
- Nearly 10% in the first five months of 2025
- India Coal Import Drop
- More than 5% in the first five months of 2025
- Indonesian Exports Drop
- 12% in the January-May period
- Indonesian Exports to China & India
- Down 12.3% and 14.3% respectively
- Domestic demand share
- 48.6% of Indonesia's total coal output