70 Percent of Indonesia’s Coal is Supplied by Kalimantan
10 Jul 2025, 08:42 AM
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The Ministry of Energy and Mineral Resources (ESDM) stated that 70 percent of Indonesia's coal energy sources are supplied by the island of Kalimantan, therefore, the companies operating in the area must be grateful for this blessing by utilizing it in a responsible and environmentally friendly manner."In 2024, coal will contribute 40.56 percent to the national energy mix", said Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, during the Kalimantan Edition Roadshow by the Indonesian Coal Mining Association (APBI/ICMA) in Samarinda on Wednesday.She continued, around 50-60 percent of power plants in Indonesia still depend on coal, 70 percent of which is produced from Kalimantan, so Indonesia's largest energy source is Kalimantan.In 2024, she continued, Indonesia's coal production target was 710 million tons, while the actual production was 836.1 million tons, so the target was exceeded by 117.76 percent, with a value of 37.773 billion US dollars.Meanwhile, in 2025, Indonesia's coal production is targeted to be even higher, reaching 739,674 million tons. As of May 2025, production had reached 357.6 million tons, with a value of USD 12,350 billion.According to him, coal mining has an important meaning in lighting the world, because the largest electricity needs still rely on coal production."Just imagine life without electricity because there's no coal. For example, if the power suddenly went out during this event, it would definitely be disrupted. Opening a computer or laptop also requires electricity, and so do cell phones. So when we answer a call, we also remember coal, which is the source of electricity", he said.Siti continued, stating that Non-Tax State Revenue (PNBP) from the mineral and coal sector in 2024 reached IDR 140,460 trillion, 123.75 percent of the target, equivalent to 52 percent of the total PNBP from the Ministry of Energy and Mineral Resources."So, mineral and coal to drive the Indonesian economy is not empty talk, but reality. To realize a golden Indonesia, coal plays a crucial role because it contributes to driving the national economy. But remember, this resource must be managed responsibly. Environmental management must be prioritized", said Siti.Meanwhile, Priyadi, Chairman of the Indonesian Coal Mining Association (APBI), said that coal prices are currently declining due to global economic conditions, coupled with geopolitical influences."Prices remained stable in the first quarter, but they plummeted in the second quarter due to global conditions. We can't predict coal fluctuations", Priyadi said.Meanwhile, according to Refinitiv, global coal prices closed at USD 109.75 per ton on Monday (July 7, 2025), down 1 percent. This decline extended the negative trend for three consecutive days, with the accumulated decline reaching 3.72 percent.
