Indonesia Coal Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Coal Market Analysis
The Indonesian coal market is expected to witness a CAGR of more than 6% during the forecast period.
Over the long term, factors like increasing electricity demand and supportive government policies are expected to drive the market.
On the other hand, increasing environmental concern over the use of coal is a significant restraint hindering the market's growth.
Nevertheless, the increasing ways to mine coal and extract value from coal using technologies like carbon capture and storage technologies are expected to create enormous opportunities for the Indonesia Coal Market.
Indonesia Coal Market Trends
This section covers the major market trends shaping the Indonesia Coal Market according to our research experts:
Electricity Industry to Dominate the Market
- According to 2021 figures, Indonesia possesses 3.2% of the global coal reserves, with around 34,869 million tons of coal reserves. As of 2021, 66% of Indonesia's total coal reserves were Anthracite and Bituminous coal, with the remaining 34% sub-bituminous coal and lignite.
- Power plants that utilize coal for electricity prefer to purchase fuel that is energy-efficient, inexpensive, and has less sulfur as part of a strategy to minimize greenhouse gas emissions. Indonesian coal output is tilted toward lower-energy, less-expensive sub-bituminous coal.
- The Indonesian economy has been expanding in recent years. As a result of increased urbanization and the increased number of commercial and industrial buildings requiring greater access to energy, demand and electricity consumption have also increased.
- In 2021, Indonesia generated 309.4 TWh of electricity. Out of that, 190 TWh was generated through coal, constituting 60% of the total electricity generation. Due to increased activities, the demand for increased electricity is expected to be met by coal in the short term.
- Even though the Indonesian government plans to stop building new coal power plants from 2023, the already approved power plants will be built to aid in the growth of the coal market.
- Thus, owing to the above points, the electricity industry is expected to dominate the coal market in Indonesia.
Increasing Adoption of Renewable Energy to Restrain the Market
- The electricity demand in the country is increasing, leading to an increase in the installation of different electricity generation. The majority of power generation in the country is from fossil fuels. Due to increasing regulations on emissions control, the government of India has started its energy transition from conventional sources to renewable energy sources. Thus, it is estimated that most power generation installations will be derived from renewable energy sources in the coming years.
- Between 2017 and 2021, the renewable energy installed capacity increased by almost 18%. The total renewable energy installed capacity was 11,157 MW in 2021 compared to 9459 MW in 2017. The growth rate is expected to increase furthermore during the forecasted period.
- The Indonesian government set a renewable energy target of 23% and 31% of the total electricity generation by 2025 and 2050, respectively. Currently, around 13% of power generation nationwide comes from renewable energy resources, mainly hydroelectric and geothermal power production.
- Indonesia is rich in solar power, with a potential of around 207 GW, according to the Ministry of Energy and Mineral Resources (MEMR). The Indonesian government is prioritizing the development of renewable energy sources. Therefore, Indonesia is witnessing an increasing adoption of renewable energy sources to fulfill its electricity demand and lower its emissions.
- Moreover, in September 2022, Indonesia announced plans to shut down 15 GW of coal-powered plants in the next three decades to reduce their carbon emission. It is expected that this will not only reduce carbon emissions but also increase the renewable energy installations in the country.
- For instance, in November 2022, Saudi energy firm ACWA Power announced that they had secured a contract from the Indonesian state-owned utility PT Perusahaan Listrik Negara (PLN) to build two floating solar photovoltaic (PV) power projects. The contract covers the 60MWac Saguling project and Singkarak, a floating solar project with 50MWac capacity. The two projects will have a combined capacity of 110MWac and be built with a total investment of USD 105 million.
- Similarly, many more renewable energy-based power plants are in various stages of development, which will shave off the share of predominant coal-based electricity generation and, therefore, restrain the growth of the coal market in the country.
Indonesia Coal Industry Overview
The Indonesian coal market is fragmented. Some of the major players in the market (in no particular) include PT Adaro Energy Tbk, PT Bumi Resources Tbk, PT Indo Tambangraya Megah Tbk, PT Bukit Asam Tbk, and PT Bayan Resources Tbk.
Indonesia Coal Market Leaders
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PT Adaro Energy Tbk
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PT Bumi Resources Tbk
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PT Bayan Resources Tbk
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PT Indo Tambangraya Megah Tbk
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PT Bukit Asam Tbk
*Disclaimer: Major Players sorted in no particular order
Indonesia Coal Market News
- In November 2022, the Indonesian government announced that they would allow the construction of new coal plants, with a combined capacity of 13 gigawatts, that have already been tendered out. The plan is laid out in the country's 10-year energy plan for 2021-2030.
- In November 2022, the Asian Development Bank and a private power firm announced that they were teaming up to refinance and prematurely retire a coal-fired power plant. The 660-megawatt Cirebon 1 power plant in West Java would be refinanced in a USD 250 million to USD 300 million deal on the condition that it be taken out of service 10 to 15 years before its end 40- to 50-year useful life under a memorandum of understanding.
Indonesia Coal Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Application
5.1.1 Electricity
5.1.2 Iron and Steel Industry
5.1.3 Other Applications
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 PT Adaro Energy Tbk
6.3.2 PT Bumi Resources Tbk
6.3.3 PT Indo Tambangraya Megah Tbk
6.3.4 PT Bukit Asam Tbk
6.3.5 PT Bayan Resources Tbk
6.3.6 BlackGold Group
6.3.7 Golden Energy and Resources Limited
6.3.8 PT Bhakti Energi Persada
6.3.9 Adani Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Coal Industry Segmentation
Coal is a sedimentary deposit primarily constituted of carbon and readily combustible. Coal is black or brownish-black in color and contains more than 50% carbonaceous material by weight and more than 70% by volume (including inherent moisture). It comprises plant remains compacted, hardened, chemically changed, and metamorphosed by heat and pressure throughout geologic time. Coal can be found throughout the globe. However, it is most common in areas where prehistoric forests and marshes formerly flourished before being buried and compressed over millions of years.
The market is segmented by Electricity, Iron and Steel Industry, and Other Applications. The report offers the market size and forecasts for Indonesia Coal Market in revenue (USD Billions) for all the above segments.
| Application | |
| Electricity | |
| Iron and Steel Industry | |
| Other Applications |
Indonesia Coal Market Research FAQs
What is the current Indonesia Coal Market size?
The Indonesia Coal Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Indonesia Coal Market?
PT Adaro Energy Tbk , PT Bumi Resources Tbk, PT Bayan Resources Tbk , PT Indo Tambangraya Megah Tbk and PT Bukit Asam Tbk are the major companies operating in the Indonesia Coal Market.
What years does this Indonesia Coal Market cover?
The report covers the Indonesia Coal Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Coal Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major trends shaping the Indonesia Coal Market?
The major trends in shaping the Indonesia Coal Market are a) The dominance of the electricity industry in coal consumption b) Increasing adoption of renewable energy sources c) Advancements in coal using technologies like carbon capture and storage technologies
Coal in Indonesia Industry Report
The Indonesia coal market is experiencing significant growth, driven by its extensive applications across various sectors such as electricity generation, iron and steel production, and other industrial uses. Dominated by the demand for coal in electricity generation, the market benefits from its cost-effectiveness and reliability in providing base-load power, essential for stabilizing electricity grids. The iron and steel industry also heavily relies on coal, not just for energy but as a critical component in production processes. Supported by advancements in cleaner coal technologies like high-efficiency power plants and carbon capture and storage systems, the market aligns with global efforts to mitigate environmental damage while ensuring energy security.
With abundant coal reserves, Indonesia remains a major coal exporter, enhancing its market growth and offering significant opportunities, particularly in infrastructure developments like railways and ports that support coal transportation. Coal mining in Indonesia plays a crucial role in bolstering the country's economic stability and growth. For a detailed market forecast outlook and historical overview, access industry reports and download a free sample PDF from Mordor Intelligenceā¢ Industry Reports.
The Indonesia Coal Production Market is segmented by application, including electricity, iron and steel industry, and other applications. The market size and forecasts for the Indonesia coal market are provided in revenue for all the above segments. The market outlook is promising, with industry analysis indicating robust growth trends. Industry reports highlight the market's value and segmentation, providing a comprehensive market overview. Market data and industry statistics offer insights into the market's performance, while market forecasts and predictions outline future growth prospects.
Industry research and industry information are crucial for understanding the market dynamics, with industry trends and market review shedding light on the latest developments. Market leaders play a significant role in shaping the market landscape, and their strategies are often included in detailed market analysis reports. The market's growth rate is influenced by various factors, including technological advancements and regulatory changes.
For a comprehensive understanding of the market, industry size and sales data are essential. Report examples and PDFs provide valuable information for stakeholders, aiding in strategic decision-making. Research companies offer in-depth analysis and insights, contributing to a well-rounded view of the market. The industry outlook remains positive, with sustained market growth anticipated in the coming years.
Coal Market in Indonesia Report Snapshots
