Indonesian coal exports hit lows

Indonesia's exports of thermal coal have dropped to their lowest in three years so far in 2025, dented by weak demand in China and India — the world's two largest coal consumers.

- Gavin Maguire

The world's largest exporter of coal for power generation shipped out 150 million tonnes of thermal coal over the first four months of 2025, according to data from commodities intelligence firm Kpler.

That was 12%, or nearly 20 million tonnes, less than what was shipped during the same months in 2024, and marked the biggest year-on-year decline in data going back to the start of 2017.

As Indonesia accounts for roughly half of all thermal coal exports, the lower Indonesian shipments have dragged global thermal coal exports lower too, by 7%, or 23 million tonnes, from January through April compared with the same months a year ago.

If the relatively weak pace of coal exports is sustained over the rest of the year, 2025 could mark the first annual decline in Indonesian coal exports since 2020, when the country's coal output and shipments were stalled by Covid-19.

Weaker coal import demand from China and India was the main drag on Indonesia's coal exports.

China — by far the world's largest coal producer, consumer and importer — cut its purchases from Indonesia by 14 million tonnes, or 20%, during January to April from the same period last year.

Beijing's greater emphasis on boosting local coal mine output, alongside ongoing efforts to reduce air pollution, have been the key drivers behind China's reduced import appetite.