The Jakarta Post
The world’s top thermal coal exporter must contend with significant cutbacks in coal demand as major buyers have imposed lockdowns to curb the spread of the coronavirus, which causes COVID-19.
Multinational market research firm IHS Markit estimates that Indonesian coal exports will fall to 363 million tons this year, which would be far below the government’s target of 395 million tons.
IHS Markit senior director for coal, metals and mining James Stevenson told The Jakarta Post on Friday that that the research company expected global thermal coal demand to shrink by 66 million tons this year, mainly due to drops in China (20 million tons), India (15 million tons) and Europe (17 million tons).
“We had expected light growth – just a couple million tons – before the coronavirus started happening, and its impact is pretty massive,” he said.