A Perfect Storm For Indonesian Steam Coal Exports
The Indonesian steam coal industry has been one of the primary contributors to fulfilling the global demand for coal. However, it’s been noticed in recent times that the need for coal in the Asian bloc has drastically decreased. There are many factors in place for this sudden change, but the Indonesian authorities seem to make the exports stable. Looking at the number, it’s evident that 40% of global seaborne steam coal exports since 2010 have been dependent on the Indonesian coal reserves. However, a major change occurred in the early part of the year 2015 when the Indonesian exports dropped up to 10% due to the lack in the interests of the global parties and a few local disruptions that brought a sheer jolt in the market value of the Indonesian coal industry. Another critical factor that has played a pivotal role in this inevitable change and is the subpar quality of Jakarta’s main coal supply. Since then, the Indonesian think-tank has been making efforts to ...