Indonesian Coal Demand

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Indonesian Coal is one of the main export commodities supporting the Indonesian economy and for the next several decades it will still be the main buffer of export volume. It was noted that Indonesian Coal’s production is the third largest producer in the world, exporting to various countries such as China, Japan and other far eastern countries, the Philippines, India to Korea. Besides being exported, Indonesian Coal is also used for domestic needs, due to the rapid development of steam power stations for electricity, factories throughout the archipelago, such as Java, Bali followed by other islands such as Sumatra, Kalimantan, Sulawesi to the eastern part of Indonesia . Due to the large volume of production, mining is now entering the third generation where the main producers are on the islands of Kalimantan and Sulawesi.

Indonesian thermal coal fluctuating demand and supply movements, follow the market demand, as well as the price. Therefore it is necessary to routinely check market prices in order to produce a sharp purchasing and marketing analysis. Various types of coal also each have their own markets according to their functions and uses. The supply chain process from mining to shipping is also increasingly modern, supported by increasingly sophisticated equipment, with higher loading rates. The production growth target from year to year also shows a positive trend including its export volume. The reason why Indonesian Coal is in great demand is because of its good quality, calorie content according to the specifications required, suitable for the needs of many power plants that are built, domestically and abroad.

Indonesian Coal Export and trading can be followed by one of the trends, through coal exhibitions which are held regularly every year in Indonesia, such as Coaltrans, which is currently being held every year in Bali, Indonesia. There you can see the trend of coal demand, production and the development of the years ahead. Constraints in production may occur due to weather factors, one of them is because the mining area is getting deeper into the island, then transportation through river transportation is getting smaller so that sometimes the water level changes, so that when the river flow is small, the flow can be stopped temporarily.