Logo of Phnom Penh Post newspaper Phnom Penh Post - Indonesian miners sign $1.46B China coal deal

Indonesian miners sign $1.46B China coal deal

Content image - Phnom Penh Post
Workers load coal cargo at Cirebon Port in West Java, Indonesia. THE JAKARTA POST

Indonesian miners sign $1.46B China coal deal

The Indonesian Coal Mining Association (APBI) on November 25 signed a deal with the China Coal Transport and Distribution (CCTD) association to export $1.46 billion worth of coal to China next year.

The value is low compared to that of realised exports this year, but the APBI said in a joint statement with the Ministry of Energy and Mineral Resources on November 26 that it hoped the deal would translate into 200 million tonnes of coal exports to China next year.

Ministry spokesman Agung Pribadi said: “This presents a positive opportunity to realign production levels to the expected projections.”

The ministry expects Indonesia to export 461 million tonnes of coal worldwide next year whereby China, as Indonesia’s biggest coal buyer, plays a key role in meeting that target.

The ministry in November 26’s statement noted that Indonesian coal exports to the East Asian country reached $4.9 billion up until September this year, a bigger figure than the deal value.

Coal demand collapsed this year, resulting in the Indonesian benchmark coal price plummeting to a five-year low of $49.42 per tonne in September, before recovering to $55.71 per tonne in November, ministry data show.

Nonetheless, the price remains weaker than the average $77.89 per tonne last year with experts predicting prices to remain below 2019 levels throughout next year.

APBI chairman Pandu Sjahrir said: “With this deal, coal miners are optimistic for 2021 even though the global coal market is not expected to recover to 2018-2019 levels.”

The deal signing ceremony was attended by several big names in the coal mining industry including PT Adaro Energy, PT Kideco Jaya Agung and PT Toba Bara Sejahtra, as well as Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan.



  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Courts’ decisions now published as reference source

    The Ministry of Justice has published 44 verdicts from civil litigation cases which can be used as models for court precedents and for study by the public and those who work in pertinent fields. Publication of the verdicts on December 31 came as the result of joint

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • China firm to develop Mondulkiri airport

    Tourism to the Kingdom’s northeast corridor could experience a remarkable metamorphosis after the government decided in principle of a Chinese company to study and develop a proposal to build a regional-level airport in Mondulkiri province, according to industry insiders. The Council of Ministers said