Indonesia is emerging as the major Coal supplier for countries like India, Japan, South Korea, China, Tiwan and others.
Today, Indonesia is one of the top coal producers. Earlier, Indonesia was second largest coal exporting country in the world, with exports of about 90 MnT. In 2008 it was the largest exporter of thermal coal, exporting about 180 MnT from a production volume of 239.41 MnT. Utilities, Power Generators and other end users in India, Japan, South Korea, China, Taiwan and elsewhere in Asia are turning towards Indonesia as now it’s the key supplier of competitively priced coal. China remains the major buyer of Indonesian coal, imported a total of 290 MnT of Coal, out of which 34% was sourced from Indonesia. During 2012, Indonesia exported around 384 MnT of Coal to various countries.
India however, has the world’s fifth-largest coal reserves. Coal, as a fuel is the most utilized natural resource of the country as primary source of energy. Its importance to the economy is underlined by the fact that the state retains a near-monopoly on the coal sector, as the country’s power sector makes up the majority of coal consumption.
India has 211 Gigawatts (GW) of installed power generation capacity, which is primarily utilized in coal-powered plants. But, due to insufficient fuel supplies, India suffers from a growing shortage of power generation leading to blackouts. Indian Government has plans to double the coal fired power generation capacity by 2025. With a capacity of about 4,000 MW from 11 ultra mega power plants are planned to be constructed by 2025.