China avoids Indonesian coal in a major energy shift, as its imports from Indonesia plummet sharply in July 2025. This reflects Beijing’s growing commitment to cleaner energy sources, leaving Indonesia exposed to the risks of overdependence on Chinese coal demand.
China Avoids Indonesian Coal Amid Policy Shift
China avoids Indonesian coal as imports dropped over 30% from June, based on China Customs data cited by Reuters and Bloomberg. This sharp decline reflects Beijing’s firm stance on green energy goals and the country’s push to reduce reliance on fossil fuels.
Market Impacts of Import Decline
The coal price on ICE Newcastle futures dropped 8% in just one week. Indonesian miners, especially those in Kalimantan, are now facing profit squeeze and logistic bottlenecks, as storage fills up amid fewer outgoing shipments.
Diversification Urgency for Indonesia
Indonesian coal companies are now urged to seek alternative markets like India, Vietnam, and Bangladesh. The Ministry of Energy is also pushing for increased domestic use through DMO (Domestic Market Obligation) compliance and incentivized power plant consumption.
China’s Broader Energy Transition Strategy
This move is part of China’s larger effort to peak carbon emissions by 2030 and reach net-zero by 2060. While short-term power needs still depend on coal plants for grid stability, China is rapidly investing in renewables like solar and wind. The country is also developing nuclear power. This shift shows Beijing’s commitment to balancing energy security and climate goals. It signals a clear move away from fossil fuels such as Indonesian coal.
Conclusion: Realigning Trade Dependencies
Indonesia must realign its trade strategy and build domestic market capacity to cushion the impact. China avoids Indonesian coal as part of its decarbonization plan. This sends a strong warning about the risks of relying too much on one export market. The trend highlights the need for Indonesia to diversify its energy partners. It also shows urgency in investing in sustainable alternatives. These must be resilient to global energy shifts.
