Challenges Loom Over Indonesia’s Coal Industry

Challenges Loom Over Indonesia’s Coal Industry

Coal demand for power generation have come under pressure as weakening performance across several processing and refining facilities.

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Kamis, 31 Juli 2025 | 17:00

Bisnis.com, JAKARTA — Coal commodities have come under pressure as weakening performance across several processing and refining facilities—amid declining demand—continues to weigh on the sector. Domestic miners of the so-called "black gold" have also been forced to recalibrate their strategies in response to a regulatory environment that many see as increasingly burdensome.

A slowdown in global nickel production, driven by overcapacity, has contributed to a drop in coal demand for power generation—posing a risk to Indonesia’s coal producers. This segment has been one of the fastest-growing sources of domestic coal consumption in recent years.

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