Indonesia Coal Export Collapsed: $40B Energy Industry Down 70% as Demand Evaporated
Indonesia was world's largest coal exporter: $40B annually, 5% of economy, 300K+ jobs.
Instead, Indonesia's coal industry collapsed when coal prices crashed and global coal demand evaporated.
Indonesia coal valuations: Down 70%. Coal mining jobs: 300K → 90K (-70%). Export revenue: $40B → $12B (-70%).
Indonesia's coal exporters unprofitable when coal prices fell below $40/ton. At $60-80/ton prices, mining costs (sometimes $100+/ton for deep mines) exceeded revenue.
The Collapse: From $40B to $12B
| Metric | Peak (2021) | May 2026 | Decline |
|---|---|---|---|
| Indonesia Coal Exports | $40B | $12B | -70% |
| Coal Price | $150/ton | $40/ton | -73% |
| Mining Jobs | 300K | 90K | -70% |
Indonesia's coal industry was devastated by commodity price crash (see petroleum collapse for context).
The Core Problem: Demand Collapse
- Global power generation: Down (see energy industry)
- Coal demand: Down 60-70%
- Coal prices: Crash from $150 → $40/ton
- Mining unprofitable at $40-80/ton prices
- Production cuts; mass layoffs
Timeline
1980-2023: Indonesian Coal Boom
- Indonesia: World's #1 coal exporter
- 300K mining jobs; $40B exports
2024: Energy Industry Decline
- See energy sector collapse
- Coal demand down 60%
- Coal prices: Crash to $40-80/ton
Q1-Q2 2025: Industry Collapse
- Mines unprofitable
- Mass layoffs: 210K jobs
- Exports down 70%
May 2026: New Reality
- Indonesia coal exports: $12B (down 70%)
- Mining jobs: 90K (down 70%)
Lesson: Indonesia's coal industry depended on high prices and steady export demand. When both disappeared, industry collapsed.
IndonesiaCoalMiningEnergy Crisis