Mapping the Country’s Dependence on Indonesia’s Coal Import Market

Abstract

Indonesia is one of the world's largest producers and exporters of coal. Its strategic geographical location facilitates coal export activities to consumer countries. In addition, the quality of Indonesian coal is also very suitable for steam power plants, especially sold at competitive prices on the international market. This research highlights how the world's largest coal-importing countries depend on the Indonesian coal import market. This means that Indonesian coal significantly influences the world's energy contribution. Based on this fact, the author states that the coal that Indonesia exports to importing countries dramatically affects the economic conditions of these countries. Driven by population increases, economic expansion, improved quality of life, and energy use, coal is an important energy source. Therefore, many countries import coal to meet domestic energy needs and reserve coal supplies long-term. To find out this, the author uses a qualitative research method, descriptive analysis with a dependency theory approach, that is analyzed in a world macro context using a world system perspective. In addition, the author also uses mean calculations to find the average result of the amount of coal imports for each country.

References

[1] Agnolucci, P., Nagle, P., and TeMAJ, K. 2023. Declining Coal Prices Reflect a Reshaping of Global Energy Trade. World Bank Blogs. Available at: https://blogs.worldbank.org/opendata/declining-coal-prices-reflect-reshaping-global-energy-trade
[2] Ahmad, M.G. 2016. Local and Imported Coal-Mix for Coal-Based Power Plants in Bangladesh. Energy Sources, Part B: Economics, Planning and Policy 11 (10). DOI: 10.1080/15567249.2013.812163
[3] Amaliya, N. 2021. Kebijakan Indonesia Dalam Menghadapi Penurunan Ekspor Batubara Ke India Akibat PandemiCovid-19 Selama Tahun 2020. Jurnal FISIP Universitas Riau 9.
[4] Asmarini, W. 2022. Ini Dia Bukti Nyata India Masih Kecanduan Ekspor Batu Bara RI. CNBC Indonesia. Available at: https://www.cnbcindonesia.com/news/20220510175725-4-337926/ini-dia-bukti-nyata-india-masih-kecanduan-impor-batu-bara-ri
[5] Bang, J. 2021. Why South Korea Still Has a Need for Coal. Earth Org. Available at: https://earth.org/why-south-korea-still-has-a-need-for-coal/
[6] Chiristina, B., Nangoy, F. 2022. Indonesia Aims for Coal Ban Resolution at Weekend. Reuters. Available at: https://www.reuters.com/business/indonesia-minister-says-emergency-over-coal-supply-crunch-cnbc-indonesia-2022-01-07/
[7] Christofis, N. 2019. World -Systems Theory. In The Palgrave Encyclopedia of Global Security Studies. Palgrave. DOI: 10.1007/978-3-319-74336-3_372-1
[8] Darmastuti, S., et al. 2021. Dinamika Kerjasama Energi Indonesia-Jepang : Peluang Dan Tantangan. Jurnal Education and Development 9 (4): 385–94. Available at: https://journal.ipts.ac.id/index.php/ED/article/view/3193 (in Indonesian)
[9] Denzin, N.K, Lincoln, Y. S. 2018. The SAGE Handbook of Qualitative. Synthese. Fifth Edit. Vol. 195. SAGE Publications. DOI: 10.1007/s11229-017-1319-x
[10] Dewi, M.P. 2018. Analisis Ekspor Batubara Indoensia. Journal of Materials Processing Technology. Vol. 1:1-19.
[11] Direktorat Statistik Distribusi. 2022. Buletin Statistik Perdagangan Luar Negeri Ekspor Menurut Kelompok Komoditi Dan Negara, September 2022. Jakarta: Badan Pusat Statistik. (in Indonesian)
[12] Irwandy Arief, M.Sc. 2014. Batubara Indonesia. Jakarta: PT Gramedia Putsaka Utama. Available at: https://books.google.co.id/books?hl=en&lr=&id=fqBLDwAAQBAJ&oi=fnd&pg=PP1&dq=batubara&ots=b_Y4EC152R&sig=3m_TDT-SPzcG19MfmNX6YiFnans&redir_esc=y#v=onepage&q&f=false (in Indonesian)
[13] Fisher, R. A. 2009. “Descriptive Statistics Objective: Review the Basic Concepts of Elementary Statistics.” Mathematical Statistics with Applications, 1–51.
[14] Garside, M. 2023. “Leading Coal Exporting Countries Worldwide in 2021 (in Million Short Tons).” Available at: https://www.statista.com/statistics/270952/global-hard-coal-exports-2009/
[15] Gosens, J., Turnbull, A. B.H. and Jotzo, F. 2022. “China’s Decarbonization and Energy Security Plans Will Reduce Seaborne Coal Imports: Results From an Installation-Level Model.” Joule 6 (4). DOI:10.1016/j.joule.2022.03.008.
[16] Juarsa, A., et al. 2023. Neraca Sumber Daya Dan Cadangan Mineral, Batubara, Dan Panas Bumi Indonesia Tahun 2022. Jakrta: Kementrian Energi dan Sumber Daya Mineral Badan Geologi.
[17] Kartono, D. Tri, and Nurcholis, H. 2016. “Konsep Dan Teori Pembangunan.” Pembangunan Masyarakat Desa Dan Kota IPEM4542/M: 23–24.
[18] Kurniawan, W. 2022. “Philippines Urges Indonesia to Lift Coal Export Ban.” Reuters. Available at: https://www.reuters.com/markets/commodities/philippines-urges-indonesia-lift-coal-export-ban-2022-01-10/
[19] Natalia, D., Yoesgiantoro, D. and Yusgiantoro, F. C. 2022. Analisis Kebijakan Domestic Market Obligation (DMO) Batu Bara Indonesia Untuk Ketahanan Neger Dan Mendukung Pertanahan. Jurnal Kewarganegaran 6 (1): 1828. Available at: https://journal.upy.ac.id/index.php/pkn/article/view/2834 (in Indonesian)
[20] Nathanael, G. K. 2020. Kerjasama Luar Negeri Indonesia Dan China: Studi Kasus Ekspor Batubara. Mandala: Jurnal Ilmu Hubungan Internasional, 3: 203–19. Available at: https://www.bps.go.id/statictable/2009/06/15/1092/produksi-minyak-bumi-dan-gas-alam-1996-2020.html (in Indonesian)
[21] Salsabila, A. R., Hergianasari, Putri, Dkk. 2022. “Kerjasama Ekonomi Indoneisa-Japan Economic Partnership Agreement (IJEPA) Terhadap Perdagangan Batubara Indonesia-Jepang Tahun 2019-2021.” Administraus- Jurnal Ilmu Administrasi Dan Manajemen 6. (in Indonesian)
[22] Santos, T. D. 1970. “The Structure of Dependence.” The American Economic Review 60 (1).
[23] Setiawan Arif, Wsibowo. A, Rosid, Fadhila A. 2020. “Analisis Pengaruh Ekspor Dan Konsumsi Batubara Terhadap Pertumbuhan Ekonomi Indonesia.” Jurnal Teknologi Mineral Dan Batubara Volume 16, 109–24.
[24] Shiga, Y. 2022. “Philippines’ Shift Away from Coal Expands with Ayala Deal.” Nikkei Asia. Available at: https://asia.nikkei.com/Business/Energy/Philippines-shift-away-from-coal-expands-with-Ayala-deal
[25] Susanto, D. A., and Admi, R. 2021. The Determinants of Indonesia’s Coal Exports Demand To Six Asian Countries. Journal of Developing Economies, 6 (1): 66. DOI:10.20473/jde.v6i1.18916
[26] Tachev, V. 2022. China’s Coal Imports Drop and the Imminent Effect on Coal Exporters. Energy Tracker Asia. Available at: https://energytracker.asia/chinas-coal-imports-drop-and-the-imminent-effect-on-coal-exporters/
[27] The Australia Institute, Australian Conservation Foundation, Japanese Climate NGO Kiki Network. 2021. Out of Sight out of Mind: Impacts of Japanese Use of Australian Coal. Japanese and Australian Groups. Available at: https://beyond-coal.jp/en/documents/au-jp_coal_report/
[28] Varadhan, S. 2023. India’s Thermal Coal Imports up Nearly 15% in 2022-Coalmint. Reuters. Available at: https://www.reuters.com/world/india/indias-thermal-coal-imports-up-nearly-15-2022-coalmint-2023-01-09/
[29] VOA. 2023. “China Bergantung Pada Batu Bara Untuk Ketahanan Energi.” VOA. (in Indonesian)
[30] Wang, Wnya, Liwei Fan. Zhenfu Li, Peng Zhou, Xue Chen. 2021. Measuring Dynamic Competitive Relationship and Intensity Among the Global Coal Importing Trade. Applied Energy 303(July). DOI:10.1016/j.apenergy.2021.117611
[31] BP. 2020. Jepang l Produski Batubara l 1981-2020 l Indikator Ekonomi. Available at: https://www.ceicdata.com/id/indicator/japan/coal-production (in Indonesian)
[32] BP. 2022. BP Statistical Review of World Energy 2022. Bp. 71st ed. British Petroleum. Available at: https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf
[33] BPS. 2022. Perkembangan Ekspor Dan Impor Indonesia September 2022 Dan Luas Panen Dan Produksi Padi Di Indonesia 2022 (Angka Sementara). In. Available at: https://www.youtube.com/watch?v=ihocBQNr1EE (in Indonesian)
[34] CNMD. 2022a. “2021 Coal Statistics.” Taguig. Available at: https://www.doe.gov.ph/energy-statistics?q=energy-resources/coal-statistics&withshield=1
[35] CNMD. 2022b. “Overal Coal Statistic.” Taguig. Available at: https://www.doe.gov.ph/energy-statistics?q=energy-resources/overall-coal-statistics&withshield=1
[36] Coal Researches Network. 2022. S Korea 2021 Coal Imports Rise 1,6& YoY. Sxcoal. Available at: http://www.sxcoal.com/news/4643849/info/en
[37] Ener Data. 2022. “South Korea Energy Report.” Available at: https://www.enerdata.net/estore/country-profiles/south-korea.html
[38] Energy tracker Asia. 2022. Japan’s Coal Obsession. Energy Tracker Asia. Available at: https://energytracker.asia/japan-coal-obsession/
[39] ESDM. 2021a. “Cadangan Batubara Masih 38,84 Miliar Ton, Teknologi Bersih Pengelolaannya Terus Didorong.” In Cadangan Batubara Masih 38,84 Miliar Ton, Teknologi Bersih Pengelolaannya Terus Didorong. Jjakarta Pusat: Kementrian Energi dan Sumber Daya Mineral Republik Indonesia. (in Indonesian)
[40] ESDM. 2021b. Handbook Energy & Economic Statistics Indonesia. Ministry of Energy and Mineral Resources Republic of Indonesia. Available at: https://www.esdm.go.id/en/publication/handbook-of-energy-economic-statistics-of-indonesia-heesi
[41] ESDM. 2021c. “Pemerintah Mendorong Transisi Energi Melalui Energi Baru Terbarukan Dan Efisiensi Energi.” Kementerian Energi Dan SUmber Daya Mineral Republik Indonesiamber Daya Mineral Republik Indonesia. Available at: https://www.esdm.go.id/id/berita-unit/direktorat-jenderal-ketenagalistrikan/pemerintah-mendorong-transisi-energi-melalui-energi-baru-terbarukan-dan-efisiensi-energi
[42] ESDM. 2022. “Pemenuhan Kebutuhan Batubara Dalam Negeri.” https://jdih.esdm.go.id/storage/document/KeputusanMenteriESDMNomor267KMB012022SalinanPemenuhanBatubara.pdf (in Indonesian)
[43] ESDM. 2023. “The Third Indonesia-China Energy Forum.” Available at: https://migas.esdm.go.id/post/read/The-Third-Indonesia-China-Energy-Forum
[44] ESDM. 2024. “DMO Terpenuhi, Produksi Batubara Lampaui Target 2023.” Kementerian Energi Dan SUmber Daya Mineral Republik Indonesiamber Daya Mineral Republik Indonesia. (in Indonesian)
[45] Global Data. 2021. “Volume of Coal Imported by Japan from Australia, 2017-2020 (Million Tonnes).” Global Data. Available at: https://www.globaldata.com/data-insights/mining/volume-of-coal-imported-by-japan-from-australia-1150124/
[46] IEA. 2002. Coal in the Energy Supply of India. International Energy Agency. International Energy Agency. https://www.iea.org/reports/coal-in-the-energy-supply-of-india.
[47] IEA. 2022. Coal 2022. Available at: https://iea.blob.core.windows.net/assets/91982b4e-26dc-41d5-88b1-4c47ea436882/Coal2022.pdf
[48] Indeed. 2023. “A Guide to Statistical Tools in Qualitative Research.” Indeed. Available at: https://uk.indeed.com/career-advice/career-development/statistical-tools-in-qualitative-research
[49] Investment. 2018. “Analisis Pertambangan Batubara.” Available at: https://www.indonesia-investments.com/id/bisnis/komoditas/batu-bara/item236
[50] Korea View. 2022. “Seoul’s Dependence on Coal Imports.” The Korea Economic Institute of America (KEI). Available at: https://keia.org/the-peninsula/seouls-dependence-on-coal-imports/#:~:text=What Happened%3A, the ban on coal exports
[51] Ministry of Coal. 2021. “Coal Production and Import.” India. Available at: https://beyond-coal.jp/en/documents/au-jp_coal_report/
[52] Ministry of Coal. 2022. “Substantial Reduction in Coal Imports Despite Increased Power Demand.” India.
[53] Newswire, Globe. 2023. “China Coal Imports Industry Analysis & Outlook, 2018-2022 & 2023-2032.” Research and Markets The world’s Largest Market Research Store. Available at: https://www.globenewswire.com/news-release/2023/02/01/2599929/0/en/China-Coal-Import-Industry-Analysis-Outlook-2018-2022-2023-2032.html
[54] SME. 2021. “Coal’s Importance to the World.” Available at: https://www.smenet.org/What-We-Do/Technical-Briefings/Coal-s-Importance-in-the-US-and-Global-Energy-Supp
[55] WCA. 2020. Coal Facts: Discover Coal’s Contribution. Available at: https://www.worldcoal.org/?s=China%27s+coal+imports
[56] World Energy Statistics. 2022. Coal and Lignite Trading by Region. Ener Data. Available at: https://yearbook.enerdata.net/coal-lignite/balance-trade-data.html
Published
2024-03-29
How to Cite
MANURUNG, Riski Nurul Hasanah; PRAKOSO, Havidz Ageng; ROZIQIN, Ali. Mapping the Country’s Dependence on Indonesia’s Coal Import Market. Theoretical and Practical Research in Economic Fields, [S.l.], v. 15, n. 1, p. 62 - 74, mar. 2024. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/8363>. Date accessed: 01 may 2024. doi: https://doi.org/10.14505/tpref.v15.1(29).07.