IEEFA – Indonesia's coal companies

Indonesian coal companies have been reporting record profits in 2022 and 2023, driven by global coal price surges due to restrictions on Russian coal imports. Out of the seven major coal producers analyzed, five have diversified into non-coal businesses while two are expanding coal capacity. Bayan Resources and Geo Energy plan to increase coal capacity by 58 million tonnes, while Adaro is investing in aluminum, renewables, and up to 2.2 gigawatts of coal capacity. The expansion of coal capacity could support up to 21GW of planned coal power, potentially increasing CO2 emissions and posing a threat to Indonesia's decarbonization targets under the Paris Agreement. These companies produced a total of 217 million tonnes in 2023, accounting for 27% of Indonesia's total coal production. The seven companies reported record profits of US$8.4 billion in 2022 and US$4.4 billion in 2023.