With only one leading coal company currently making a profit, the Indonesian government must let the market decide the future for financially broken coal companies wishing to avoid payments of much-needed royalties and loans.
Exacerbated by COVID-19, coal prices have dropped some 52% in 5 months and Indonesia's coal export markets, including China and India, are slashing imports and increasingly turning to domestic sources to bolster energy security.
THE INDONESIAN COAL INDUSTRY IS FACING A RANGE OF STRUCTURAL RISKS THAT GO BEYOND THE CURRENT WEAK PRICING.
50% fall in coal prices since January hammers a structurally broken industry