Indonesia's coal exports fell on the year for a fourth consecutive month in April, as weaker demand from China and India continued to weigh on shipments.
The world's largest coal exporter shipped 37.33mn t of all coal types in April, down by 3.5pc on the year, according to Indonesian customs data compiled by Global Trade Tracker (GTT). Volumes were broadly stable from March's 37.6mn t.
Cumulative exports in January–April reached 151.1mn t, down by 6.9pc from a year earlier. Thermal coal accounted for nearly 96pc of total shipments last month.
Exports declined in line with a drop in shipments to key markets, China and India — the world's top two coal importing nations. The decline also comes as Indonesian coal output continued to remain under pressure in line with weak demand and lack of clarity over annual production quotas.
Seaborne prices added further headwinds, with suppliers raising offer prices citing supply-side issues as well as Asian summer demand. The delivered costs have also risen on the back of higher freight costs linked to the US-Iran conflict, eroding the competitiveness of imported seaborne coal in key markets. Argus assessed the GAR 4,200 kcal/kg coal at $66.30/t fob Kalimantan on 5 June, the highest level since May 2023. The elevated prices are likely to continue weighing on demand from buyers of imported coal.
Shipments to China fell to 11.38mn t in April, down by 4.3pc on the year and by 5.7pc from 12.07mn t in March, according to the GTT data. Chinese customs data put thermal coal imports from Indonesia slightly lower at 11.07mn t, marking a sharper 22pc on the year decline in April. Overall Chinese thermal coal imports fell by 23pc on the year to 20.88mn t in April.
Exports to India rose on the month to 8.23mn t from 7.81mn t, but were down by 24pc on the year. This was in line with the declining trend seen in India's receipts of seaborne coal. Receipts from Indonesia were at 7.99mn t in April, accounting for about 59pc of India's 13.59mn t of thermal coal imports, according to shipbroker Interocean estimates. Indian imports declined by 13pc on thboe year in April, Interocean data show, extending a downturn as strong domestic output continues to cap Indian demand for seaborne coal.
Southeast Asia was the main source of demand growth for Indonesian coal. Exports to the region rose to 11.28mn t in April, up by 6.4pc on the month and 8.4pc on the year, making it the only major region to record growth.
Vietnam led gains, with imports rising by 33pc on the year to 3.73mn t on higher coal-fired generation, as coal burn increased in line with power demand and addition of new capacity. Shipments to Thailand and the Philippines also increased — rising by 26pc on the year to 1.3mn t and 4.5pc year-on-year to 3.54mn t, respectively. Exports to Malaysia declined by 14pc on the year to 2.17mn t in April.
But shipments to South Korea rose by 69pc from a year earlier to 1.82mn t.
The decline in exports is in line with the dip in output. Indonesia produced 230mn-235mn t of coal in the first four months of 2026, according to Argus estimates based on market information. This is down from a revised 250.5mn t a year earlier.
The output represents around 38pc of the government's 600mn t full-year target, although the production guidance could be reviewed and revised upwards next month, according to market participants. Indonesian coal producers could have supplied 80mn-85mn t of coal to the domestic market under domestic market obligation (DMO) requirements during the first four months of the year, market participants added.
Supply constraints persisted through April. Delays in RKAB mining quota approvals continued to limit export availability, while the DMO — raised to at least 30pc of annual output — further tightened exportable volumes. Some smaller producers have reportedly exhausted quotas and are selling from stockpiles.
On the supply side, Indonesia rolled out the first phase of its export centralisation plan through Danantara Sumber Daya Indonesia on 1 June, which might introduce an additional layer of operational uncertainty over seaborne supplies.
