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Connecting Indonesia to global markets
KDN Indonesia serves customers and partners across :
Indonesia anchors its economy as a top global supplier and exporter of thermal coal, relying on major hubs like Jakarta, Surabaya, Medan, Makassar, Kalimantan to link domestic production with international buyers. The export ecosystem is undergoing structural shifts, with the government centralizing natural resource exports to strengthen national control over pricing and destination markets.
China
China’s coal demand is expected to rebound as power demand growth reaccelerates. This growth is expected to be driven by the increasing demand for coal-fired power generation, which remains the dominant driver of global coal demand. The shift in demand towards Asia, particularly China and India, is reinforcing the eastward shift in demand for coal. The Chinese coal market is navigating a paradox of slow volume growth, intensifying consolidation, and gradually shrinking strategic relevance within the national energy mix. However, the demand for coal is expected to continue to grow, with China’s coal consumption holding steady, supported by flexible coal-fired power and increasing demand for chemical production. The market is also being reshaped by artificial-intelligence workloads and cloud services, which add inflexible baseload demand that renewables cannot yet satisfy. Data centers are poised to consume an extra 90 TWh of coal-fired electricity by 2030, and provincial regulators have fast-tracked 15 GW of coal capacity in 2024 to backstop these clusters. Overall, the Chinese coal market is expected to continue to play a significant role in global coal demand dynamics.
Malaysia
The country’s coal consumption marking a 24% increase Y-o-Y from 2023. This growth is attributed to the increase in coal-fired power generation, which accounts for about 90% of Malaysia’s coal consumption. Malaysia’s thermal coal imports in 2025 are led by coal-fired power generation, with imports exceeding the previous all-time yearly high recorded in 2024. The country’s plan to phase out coal power plants by 2044 has been offset by power demand, making it difficult to reduce coal imports. The market is structured with a mix of production and consumption, with Malaysia importing a significant portion of its coal from Indonesia. The Malaysian government is actively involved in the coal procurement process, with ongoing tenders for coal suppliers to be pre-qualified as vendors.
Thailand
Indonesian coal has a long-standing history in the Thai market as a vital, cost-effective energy and industrial resource. Because Indonesia produces high-quality, low-cost steam coal that is easy to blend with other varieties, it has historically served as a cornerstone for Thailand’s manufacturing and power generation needs. Since decades, Indonesia remains the top supplier of coal to Thailand, with a significant portion of its coal exports being consumed in the country.
Indonesia
The market’s scale reflects Indonesia’s position as the world’s largest thermal-coal exporter and its entrenched role in the country’s economic growth. The Indonesia coal market is projected to grow significantly in the coming years, driven by various factors. This growth is supported by ongoing demand from the power sector, and strategic reserve quality that gives premium-grade producers additional pricing power. Additionally, regulatory reforms are opening new domestic outlets for low-rank coal.
India
India has been a significant buyer of Indonesian coal, as the second-largest destination after China. The India coal market is projected to grow significantly in the coming years, driven by increasing power generation capacity plans, rising electricity demand, and rapid industrial development. Key drivers include the expansion of coal-fired power plants. Despite supportive government policies for renewable energy generation, the demand for coal remains strong, particularly in the power generation sector. The Indian coal market is a critical segment of the country’s energy sector, with coal being a primary fuel for power generation and a significant source of energy for various sectors, including industry, transport, residential, commercial, and public services.
Philippines
The Philippine’s coal market is projected to see significant increase in demand, maintaining its position as a regional top consumer alongside Indonesia and Vietnam. This growth is driven by robust economic and population growth, a 27% rise in electricity demand, and coal still accounting for around 63% of the country’s power generation mix. The country relies heavily on imports for its coal-fired power, with around 98% of its total imported coal supply coming from Indonesia. The coal market in the Philippines is characterized by its resilience and growth, despite facing challenges such as power outages and high market prices due to global fossil fuel market volatility. The country’s energy transition efforts are ongoing, but coal remains a key component of its energy strategy.
Vietnam
Vietnam’s coal imports have surged to record highs, positioning the nation among the top five global coal importers. The country’s increasing industries and power generation demands are the main drivers of its coal imports. In 2025, Vietnam coal import volume surpassed previous highs and highlighted the nation’s growing dependence on seaborne thermal coal supplies for industrial operations. The demand for imported coal is expected to rise more in line with Vietnam’s plans to grow its economy and expand its overall energy-intensive manufacturing capabilities. The increase in imports is primarily led by utility demand and purchases by major coal players. Vietnam’s reliance on Indonesian coal is significant, with seaborne cargoes meeting more than half of its coal requirement. Vietnam’s economic expansion and energy demands have created unprecedented challenges, necessitating a shift in procurement strategies to maintain industrial competitiveness.