Indonesia, one of the largest coal exporting countries, may reduce its yearly coal production next year as estimated to produce 10 MnT less coal in 2017.
It’s being difficult for smaller miners to survive on the given Indonesian market scenario, where prices have been hit rock bottom since a year and global demand have also tumbled down. Big importing countries such as India and China are focused to reduce their import more in upcoming year. Besides, the global outlook is not reflecting any hope to strengthen Indonesian coal market shortly.
However, the country’s coal miners opt to cut their output as they didn’t see any possibilities to survive for longer term, looking at the present scenario. Smaller miners are facing difficulty in marketing their coal, which may continue further in 2017 also.
Quantity in MnT Source: SteelMint, Indonesian Customs
Indonesia is targeted to produce 419 MnT coal this year and about 409 MnT in 2017, which was about 392 MnT in 2015.
Indonesian coal production, export and domestic market obligation
Indonesia’s Energy and Mineral Resources Ministry reported a downfall of 14.5% Y-o-Y in coal production during 2015. The country was marked about 425 MnT production target for the year. However, Indonesian coal miners curtailed production target by 20% in 2015. 
Source: SteelMint, Indonesian Customs Quantity in MnT
Indonesia’s main export market is not expected to improve significantly in short-term. However, domestic coal demand may grow in the year ahead due to accelerating economic growth, growing industrial output and new coal-fired power plants that are in-line to come soon.
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