Indonesia's coal exports in April 2026 dropped to their lowest level for the month in five years, as policy uncertainty, high fuel costs and logistical bottlenecks curbed shipments to other countries.

Total coal exports stood at 37.33 million tonnes in April, down 5.93% from 39.69 million tonnes a year earlier and down 0.72% from 37.60 million tonnes in March, data from Statistics Indonesia (BPS) showed.

Monthly exports have remained on a downward trend since the start of the year, weighed by policy uncertainty. Most miners have prioritized fulfilling domestic market obligations (DMO), diverting more high-calorific and some low-calorific coal to the domestic market, squeezing export volumes.

Rising fuel costs amid Middle East tensions have pushed up production costs and compressed profit margins, dampening export appetite. Buyers' strong price-cutting stance further discouraged miners from boosting exports. El Nino conditions also lowered river water levels in Central Kalimantan in late April, disrupting barge transportation.

Regulatory uncertainty curbed export willingness in the near term. Although the Ministry of Energy and Mineral Resources approved most mining work plans (RKAB) by end-March, remaining approvals were not completed until the second half of April. The government's plan to raise mining royalties to cover fiscal deficits, while having limited near-term impact on spot markets, has added cost uncertainty for future supply, prompting some miners to adjust export schedules.

On the demand side, major export markets lacked substantive buying interest. China and India, the top two destinations for Indonesian coal, were in a seasonal lull in April, with buyers showing weak purchasing appetite. China had ample domestic inventories and continued to push for lower prices, while India's buying was insufficient to absorb Indonesia's potential supply.

Export revenue in April stood at $2.53 billion, up 7.2% year on year and up 4.18% month on month, implying an average export price of $67.69/t, up 13.96% year on year and 4.94% month on month.

For January-April, total coal exports reached 151 million tonnes, up 8.87% year on year, while export revenue fell 8.51% to $9.29 billion, implying an average price of $61.51/t, up 0.4% year on year.

By coal type, other coal exports totaled 24.76 million tonnes in April, down 9.35% year on year but up 1.69% month on month, accounting for 66.33% of total exports. Lignite exports stood at 8.67 million tonnes, up 9.75% year on year and 6.64% month on month, representing 23.21% of the total.

Other bituminous coal exports fell 24.33% year on year and 32.89% month on month to 2.33 million tonnes, a 6.25% share. Coking coal exports rose 12.94% year on year but fell 3.96% month on month to 1.57 million tonnes, a 4.21% share.

Thermal coal exports — comprising other coal, other bituminous coal and lignite — totaled 35.76 million tonnes in April, down 6.62% year on year but up 0.53% month on month, accounting for 95.79% of total exports. Thermal coal export revenue reached $2.33 billion in the month, up 4.69% year on year and 4.03% month on month.

By destination, the top five export markets in April were China, India, Vietnam, the Philippines and Malaysia, together accounting for 77.81% of total exports. Four of the top 10 destinations were Southeast Asian countries.

China remained the largest export destination in April, receiving 11.38 million tonnes, down 4.35% year on year and 5.78% month on month — the lowest since July 2025. China's share of total Indonesian coal exports fell to 30.47% from 32.11% in March. Export revenue from China stood at $639 million, up 9.89% year on year but down 0.45% month on month.

Exports to India totaled 8.23 million tonnes in April, down 28.11% year on year but up 5.35% month on month, accounting for 22.05% of total exports. Exports to Vietnam rose 33.08% year on year and 17.87% month on month to 3.73 million tonnes, a 9.98% share.

Exports to the Philippines reached 3.54 million tonnes, down 3.66% year on year but up 17.46% month on month. Exports to Malaysia totaled 2.17 million tonnes, down 14.31% year on year and 4.91% month on month.

Exports to Southeast Asian countries totaled 11.28 million tonnes in April, up 5.49% year on year and 6.39% month on month, accounting for 30.2% of total exports. Exports to European countries stood at 78,800 tonnes, up 7.71% year on year but down 2.23% month on month.

Looking ahead, Indonesian coal exports are likely to remain tight but the decline may narrow. The DMO policy will continue to squeeze export volumes, while high fuel costs and low water levels causing logistical bottlenecks are unlikely to ease quickly, limiting spot liquidity. However, as buyers in India and China gradually release procurement demand after price corrections, and with the energy ministry expecting remaining RKAB approvals to be completed by late April, some additional quotas could enter the market in May.

In addition, the government announced in late May that coal export operations would be gradually transferred to a single state-owned enterprise starting June, a policy shift that could prompt some buyers to accelerate purchases before the change takes effect. Overall, Indonesian coal exports may edge up in May, but the increase is expected to be limited.