India's Coal Export Policy Shift: Analysis and Implications

Background on India's Policy Change

India has announced a significant shift in its coal export policy, allowing power plants with domestic coal access to export up to 50% of their allocation. This decision was made after Indian power plants recorded surplus coal supplies. The policy change was announced by Indian Information Minister Ashwini Vaishnaw on December 12, 2025.

Indonesian Coal Industry Perspective

The Indonesian Coal Mining Association (APBI) has assessed that this policy change will not have a significant immediate impact on Indonesia's coal exports. According to Gita Mahyarani, Executive Director of APBI, the short-term effects on Indonesian coal exports are expected to be limited. The flexibility allowed to Indian power plants to export coal is seen as a measure to manage their surplus stock rather than a long-term shift in their coal import strategy.

Key Details of India's New Coal Export Policy

• Power plants with domestic coal access can export up to 50% of their allocation
• Companies can use coal flexibly among group companies
• The decision follows a surplus in coal supplies at Indian power plants
• The policy aims to manage the surplus stock effectively

Market Implications

While the immediate impact on Indonesian coal exports is seen as limited, the global coal market dynamics remain a factor to watch. Indonesia remains one of the world's largest coal exporters, and any significant changes in major markets like India could have long-term implications for the industry. The APBI continues to monitor the situation closely to assess any potential long-term effects on Indonesia's coal export market.