Coal comfort: Indonesia’s favourite fuel overshadows gas and LNG

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Home to 264 million people, Indonesia is the world’s fourth most populous country. Self-sufficient when it comes to its gas needs, it consumes its own LNG – domestic supply stood at 3.47 mt in 2019 – while being a major exporter of the fuel. It is also a top coal producer, ranking second in the world after Australia in terms of exports.

But Indonesia’s gas reserves are depleting and decision-making by the government on the development of new discoveries is slow. As a result, it could face a gas deficit later this decade, despite official insistence to the contrary.

Energy self-sufficiency is very important for Indonesia, and the government is keen to avoid LNG imports for as long as possible. But with power demand forecast to grow by around 6.4% annually until 2028, it is not surprising that its latest power development plan has kept coal – of which Indonesia has plenty – at the heart of its power mix.

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