European Energy Crisis: Indonesia’s Coal Exports Soar 4 Times

The Indonesian Coal Mining Association (APBI) reports that coal exports to Europe until early October 2022 have reached 3.5-4 million tons. This achievement has increased four times compared to last year’s average of only 1 million tons. This increase was also conveyed by the Executive Director of APBI Hendra Sinadia (5/10).

“In 2020-2021 coal exports to Europe are reported to be below 1 million tons. So if by September it is close to 4 million tons, this means that this is a significant increase,” said Hendra.

Reported by katadata.co.id, Hendra explained that the destination countries for Indonesia’s coal exports include Poland, Spain, Greece, the Netherlands, and Germany. But for now, he can not confirm information about the quality or calories of coal shipped to Europe.

The significant increase in Indonesia’s coal exports to Europe cannot be separated from the energy crisis that hit Europe. The energy crisis was caused by the economic sanctions issued by the European Union (EU) to Russia over the conflict in Ukraine. The steps taken by the EU were retaliated by Russia’s actions to stop gas supplies to a number of EU members such as Germany, France and Italy.

Countries affected by the gas shutdown have begun planning to revive coal-fired power plants to overcome the lack of gas supply. Hendra explained that coal exports to Europe were not new. In 2017, a number of companies already delivered coal to Europe.

“But it’s not big. Around 2019-2021 it will be below 1 million tons,” he added.