Indonesian coal production broke a new record in 2024, making it the third-largest producer in the world after China and India. This trend is not just a number amid the global wave of electrification and surge in domestic energy demand. It is a signal of a shift in the national energy strategy.
National Coal Production Trends
National coal production trends show a significant increase in the last five years. From 563.73 million tons in 2020, production increased to 836.13 million tons in 2024 beyond the national coal production target.
This increase indicates the industry’s readiness to maintain a stable national energy supply amid the surge in electrification demand. The achievement of fulfilling domestic coal demands in 2024 was 128.33% of the target of 181.28 million tons was a signal that Indonesia is ready to respond to future energy challenges.
Indonesian Coal Production Data for 2020-2024*
|
Year |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Coal Production (million ton) |
56.73 |
613.99 |
687.43 |
775.18 |
836.13 |
*Source Performance Report of MEMR year 2024
Coal Exports and National Economic Contribution
Not only to support domestic electricity, coal exports are being a significant source of foreign exchange for the country, as well. Throughout 2024, Indonesia recorded a realized contribution of mineral and coal to non-tax state revenues (PNBP) of IDR 140.46 trillion, exceeding the target by 123.71%.
In 2024, GEMS and its subsidiaries’ coal market share covered the domestic market and various countries in Asia, including China, India, South Korea, the Philippines, Malaysia, Bangladesh, Vietnam, Cambodia, and Hong Kong. A total of 63% of GEMS’ total production was allocated to the export market.
This role makes the mining sector one of the supporters of the state budget. GEMS also maintain the supply chain of the export as well as fulfil the domestic demands, which ultimately strengthens Indonesia’s position in the increasingly competitive global energy map.
Investment Opportunities & Energy Security
Although the transition to new and renewable energy (EBT) continues to be echoed, coal-fired power plants and the steel and cement industries still depend on coal as their main energy source.
This dependence actually opens up investment opportunities for Indonesian coal, especially to ensure a stable energy supply during the transition period. With adaptive and sustainable governance, coal remains a strategic bridge towards national energy security and independence.
Green Mining: Sustainable Mining Technology
To support decarbonization, PT Borneo Indobara (BIB) under GEMS continues to promote technology-based mining efficiency. Through operational digitalization systems, GEMS develops digital innovations based on artificial intelligence (AI).
This covers the entire mining cycle process, from production, inventory processes in Run of Mine (ROM) Stockpile, coal hauling processes, to coal loading processes in port areas (barging, transshipment, and sales). GEMS will continue to adapt to mining technology while supporting decarbonization efforts.
