The Coal Production Market of Indonesia
Coal is one of the most important fossil fuels worldwide as it is critical for the generation of electricity as well as for the production of cement and steel. Indonesia is one of the leading exporters and producers of coal worldwide. As per Indonesia's Ministry of Energy and Mineral Resources, the coal reserves in Indonesia are predicted to last around 83 years if the current rate of mining is to be continued. China, India, Japan, and South Korea are considered the main export destination countries for Indonesian coal. The peak years of coal production in Indonesia contributed almost around 85 percent to total state revenue from the mining sector.
Reasons for Indonesian Coal Upsurge
Coal is the ruling force when it comes to electricity generation. Almost, 27 percent of the globe’s total energy output and more than 39 percent of all power is generated by coal-fired power plants all because of its abundance. Also, the mining of coal is relatively easy with low-cost extraction. Furthermore, less expensive infrastructure is required for its production in contrast to other energy resources.
The coal distributor of Indonesia contains the Indonesian coal from the abundant reserves in medium and low-quality coal. This Indonesian coal is then competitively priced on the global industrial market (this is because of Indonesia's low labor wages).
Another reason for the upsurge of coal in the global market is Indonesia's strategic geographical position towards the massive emerging markets of China and India. Now, there is also a high demand for low-quality coal from both China and India as many new coal-fired power-plants have been constructed to supply power to their immense populations.
However, the future may observe the utilization of clean coal technologies in coal mining, and Indonesia is expected to play a major role in the coal mining sector globally.