Indonesian coal exports dip amid price dispute
Workers walk near a tugboat carrying coal barges at a port in Palembang, South Sumatra province, Indonesia, January 4, 2022. Antara Foto/Nova Wahyudi/ via REUTERS/File Photo
JAKARTA: Indonesian coal exports dropped 6.43% to 160 million tonnes in the January-April period of 2025, according to data from the Energy and Mineral Resources Ministry.
Surya Herjuna, the ministry's coal business development director, denied that high reference prices were to blame, but traders have warned that misaligned pricing indices could further erode global demand as thermal coal prices hit four-year lows.
Surya said the declining exports were caused partly by geopolitical tensions, which have dampened demand from key buyers, especially China and India, the two most populous countries.
'Due to the trade war, production activity in both countries has slowed,' he said during a discussion in Jakarta last Wednesday, as Bisnis reported.
Chinese customs reported a 20% year-on-year (yoy) decline in April.
Some buyers have cited Indonesia's reference coal price as a possible deterrent, arguing it was higher than global market rates.
Surya denied that claim, noting that domestic coal sales had also dropped to 12 million tonnes in the first quarter from 16 million tonnes a year prior.
Asia's seaborne thermal coal prices have dropped to their lowest levels in four years, driven by reduced imports from major buyers China, India and Japan, according to a recent Reuters report.
Prices for key thermal coal grades from top exporters Indonesia and Australia have been steadily declining since October and have fallen more sharply in recent weeks amid weakening demand. — The Jakarta Post/ANN
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Brazil plans to cut tax breaks, curb education spending in fiscal package, say sources
Brazil's President Luiz Inacio Lula da Silva stands on the day he attends a press conference at the Planalto Palace in Brasilia, Brazil June 3, 2025. REUTERS/Adriano Machado/File Photo BRASILIA (Reuters) -Brazil's government is negotiating a package of fiscal measures with congressional leaders that includes cuts to tax exemptions and limits on the growth of transfers to an education fund, according to sources familiar with the talks. After initially signaling the measures would be unveiled on Tuesday, Finance Minister Fernando Haddad said they would be disclosed only after further discussions with party leaders on Sunday. First reported by local newspaper Valor Economico and confirmed by three government sources who requested anonymity, the package is being prepared as an alternative to the controversial hike in the financial transactions tax (IOF) announced last week, which drew broad backlash from lawmakers and business sectors. The plan focuses heavily on reducing tax benefits, a longstanding target of President Luiz Inacio Lula da Silva's leftist administration, said three sources. His economic team often criticizes the volume of tax exemptions that weaken public revenues, though previous attempts to roll them back have seen limited success in Congress. That includes a payroll tax break for companies, which remains in place without due compensation. One of the sources said the new package includes a proposed constitutional amendment that would establish rules to curb growth in transfers to the Fund for the Development of Basic Education. A similar initiative in last year's fiscal package was watered down by Congress, which blocked efforts to redirect more of the fund's resources to full-time education spending. The new measures aim to create fiscal space for the government to revise the recent IOF tax decree, which increased rates on a range of credit, foreign exchange, and pension transactions. (Reporting by Bernardo Caram and Lisandra Paraguassu, writing by Marcela Ayres; Editing by Sharon Singleton)
The Star
an hour ago
- The Star
LinkedIn CEO to take over Office, more AI duties in Microsoft executive shuffle
FILE PHOTO: LinkedIn CEO Ryan Roslansky attends a conference at the Cannes Lions International Festival of Creativity in Cannes, France, June 21, 2022. REUTERS/Eric Gaillard/File Photo SAN FRANCISCO (Reuters) -The CEO of LinkedIn will take additional responsibility for Microsoft's Office products, while an executive responsible for one of the company's leading business-to-business artificial intelligence products will start reporting to head of the company's Windows unit, according to a memo from Microsoft CEO Satya Nadella viewed by Reuters. Ryan Roslansky, who oversees the business-focused social network owned by Microsoft, will remain CEO of LinkedIn but also oversee products such as Word and Excel and also "Copilot," Microsoft's leading AI product, within the company's productivity software suite, the memo said. Roslansky will report to Rajesh Jha, who oversees Microsoft Windows and Teams, among other duties. The memo said existing Office leaders Sumit Chauhan and Gaurav Sareen will report to Jha as well. Also moving to report to Jha will be Charles Lamanna, who leads "Copilot" for business and industrial users, the memo said. (Reporting by Stephen Nellis in San FranciscoEditing by Nick Zieminski)
The Star
2 hours ago
- The Star
Mexico to announce 'measures' next week if no deal on US metals tariffs
Mexico's President Claudia Sheinbaum walks along with Mexico's Defense Minister Ricardo Trevilla Trejo during the inauguration of the Mexico Aerospace Fair (FAMEX) 2025 at the Santa Lucia military airbase in Zumpango, near Mexico City, Mexico April 22, 2025 REUTERS/Raquel Cunha/File Photo (Reuters) - Mexico will announce measures next week if there is no agreement reached with the United States on the steel and aluminum tariffs announced, president Claudia Sheinbaum said Wednesday. She also called the U.S. announcement to raise the metals' tariffs to 50% from the 25% introduce in March an "unfair measure" during her morning conference, citing the free trade agreement Mexico and Canada share with the United Sates. Sheinbaum however said that Mexico's response would not be "an eye for an eye." "It is not a matter of revenge, or retaliation as they call it in English," she said. "It is a matter of protecting our jobs and our businesses." U.S. President Donald Trump had late on Tuesday signed an executive proclamation activating the tariffs starting Wednesday. The Trump administration also wants countries to provide their "best offers" to avoid other punishing import levies from taking effect in early July, according to a draft letter to negotiating partners seen by Reuters. Economy Minister Marcelo Ebrard is set to hold talks with high-level U.S. officials this week, Sheinbaum said. (Reporting by Raul Cortes; Editing by Aida Pelaez-Fernandez; Editing by Sarah Morland)
