South Korea's Coal Phase-Out: Implications for Indonesia's Energy Exports

Accelerated Transition to Clean Energy

South Korea has officially joined the Powering Past Coal Alliance (PPCA), a global initiative aimed at accelerating the transition to clean energy. This move involves the accelerated shutdown of coal-fired power plants (PLTU) in the country. As one of Indonesia's major coal export destinations, this decision could have significant long-term implications for Indonesia's coal industry.

Trade Impact and Export Statistics

According to data from the Central Statistics Agency (BPS), Indonesia exported 25.3 million tons of coal to South Korea in 2023. More recent data from the Indonesian Coal Mining Association (APBI) shows that exports to South Korea continued strongly through 2025, with 26.35 million tons shipped between January and October, representing approximately 6.3% of Indonesia's total coal exports during that period.

Potential Consequences for Indonesia

The reduction in South Korea's coal consumption is likely to impact Indonesia's coal export market negatively. As a major exporter of coal, Indonesia will need to consider alternative markets or adjust its energy export strategy. The Indonesian coal industry may face challenges in compensating for the potential loss of demand from South Korea, one of its significant buyers.

Energy Transition Implications

This development aligns with the global trend of transitioning away from coal towards cleaner energy sources. While this shift presents challenges for coal-exporting countries like Indonesia, it also offers opportunities for diversification into renewable energy sectors. Indonesia may need to accelerate its own energy transition efforts and explore new markets for its energy exports.