The Indonesian Coal Mining Association (APBI) is determined to maintain its dominance in Southeast Asia’s coal export market as new players from outside the region − including Australia, South Africa, and Russia − begin entering ASEAN markets, while demand from Indonesia’s two largest buyers, India and China, is weakening.

“ASEAN countries remain a vital market for Indonesian coal alongside China and India. But we must safeguard this market because buyers can easily turn to other suppliers,” APBI Chairman Priyadi said at the Energy Insight Forum on Wednesday, September 17, 2025.

According to Statistics Indonesia (BPS), coal export value fell 21.74 percent year-on-year to US$13.82 billion (Rp392.5 trillion) between January and July 2025 from US$17.66 billion in the same period last year. The decline was mainly due to China’s reduced coal imports as it expanded renewable energy generation.

Still, Priyadi noted that coal demand in ASEAN remains stable, with renewable energy adoption in the region still low. The Institute for Essential Services Reform (IESR) reported ASEAN’s renewable energy share at just 19 percent.

“Renewable energy development in ASEAN cannot happen overnight. That’s why we remain optimistic about coal demand in the region and beyond,” he said.

Indonesia’s coal industry also relies on exports to support revenues, as the government has capped domestic prices at US$70 per ton for state utility PLN and US$90 per ton for industrial users. Meanwhile, the Energy and Mineral Resources (ESDM) Ministry set the benchmark coal price (HBA) at US$105.33 per ton in September 2025 − leaving a gap of about US$35 per ton between domestic and international markets.

“We hope domestic coal prices will rise to ensure fairness. Our goal is not only to maintain growth but also to align with Indonesia’s net-zero emissions target by 2060,” Priyadi said.