Skip to content

Indonesia Coal Export Ban May Have Low Impact on Top Buyer China

  • China has boosted domestic output to help ease fuel shortages
  • Country’s coal demand may fall ahead of Lunar New Year
Barges transporting coal are moored on the Mahakam River in Samarinda, East Kalimantan, Indonesia.
Barges transporting coal are moored on the Mahakam River in Samarinda, East Kalimantan, Indonesia.Photographer: Dimas Ardian/Bloomberg

A ban on coal exports from Indonesia may have a limited impact on top buyer China after the country boosted domestic output to stave off shortages of the fuel last year.

Record production and mild weather have helped fill power plant stockpiles in China as winter heating demand peaks, giving buyers a buffer if they’re cut off from their top exporter, Morgan Stanley analysts including Sara Chan said Monday in a research note. Indonesia’s energy ministry announced a monthlong halt in shipments on its website Jan. 1.