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.



  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.