Indonesia's coal production is expected to see growth in 2022, with the government aiming at increasing coal output to 663Mt.
Indonesia is the world’s third-largest coal producer after China and India. After registering strong growth of 8.9% in 2021, Indonesia’s coal mine production is expected to register a 2.6% year-on-year (YOY) growth to reach 629.9Mt in 2022. Due to the EU’s restriction on new coal imports from Russia, demand for coal grew from several EU nations such as Germany and Poland during the first half of 2022. Furthermore, since September 2021, Russia has been blocking a significant amount of gas from reaching Europe. The European gas crisis caused a temporary increase in the use of coal for power generation. The government intends to raise coal output to 663Mt in 2022, notwithstanding the potential for more exports to satisfy the demands of European nations. According to the Ministry of Energy and Mineral Resources (EMR), until June 28, 2022, Indonesia’s coal production had reached 294.4Mt or 44.4% of the target.
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