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Jakarta Post

Indonesia’s coal consumption remains high: BP

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, October 5, 2016   /  09:34 pm
Indonesia’s coal consumption remains high: BP Energy use — BP Group chief economist Spencer Dale (left) discusses the 2016 BP Statistical Review of World Energy in Jakarta on Wednesday. (JP/Winny Tang)

Despite a global shift toward more environmentally friendly energy sources, Indonesia’s coal consumption has increased significantly over recent years, partly triggered by a sharp drop in coal consumption in key coal markets, a British oil giant report has revealed.

The BP Statistical Review 2016 revealed on Wednesday that Indonesia’s coal consumption had doubled since 2010. Last year, coal became the country’s dominant source of fuel, accounting for 41 percent of total energy consumption.

BP Group chief economist Spencer Dale said a sharp decline in global demand for coal had led to an increase in domestic consumption of the commodity. Continuous production that occurred during weak global demand would naturally lead to an increase in domestic consumption, he explained.

“Last year, Indonesia’s exports for coal fell sharply. The reason was because the global demand decreased at that time, during which China, one of the country’s key markets for coal exports, cut its use of coal,” Dale said.

He added that over the past 10 years, growth in global coal demand had been driven by China. However, China’s economy has shifted away from coal to using cleaner, lower carbon fuel sources such as renewable energy and natural gas.

Studies show coal consumption remains popular in Indonesia despite its damaging environmental impacts. The government has committed to an ambitious 35,000 megawatt electricity program, in which coal-fueled power plants will still make up the majority of electricity generation, at around 50 percent. (win/ebf)

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