Indonesia coal mines face 760 Mtpa production decline by 2035

A report by Global Energy Monitor (GEM) indicates that several coal mines with a total production capacity of 1,145 Mtpa are scheduled to end operations between 2026 and 2035. This represents approximately 12 percent of current global production capacity, with more than half—760 Mtpa—located in Indonesia.

Tiffany Means, a senior researcher at GEM, noted that this decline does not necessarily signal a formal government phase-out policy in Indonesia. Instead, the figure likely reflects mines reaching the end of their permit lifespans. This differs from trends in countries like Germany, the Czech Republic, Romania, and Greece, where declines are driven by fossil fuel phase-out policies.

Despite the projected closures, Indonesia plans to add new coal mine capacity of 17 Mtpa in 2025. Experts warn this could lead to stranded assets, as the International Energy Agency (IEA) predicts global coal demand will remain stagnant through 2030.