Indonesia's coke industry calls for government support

Indonesia is the world's third largest coke exporter with 5.56 million tons in 2024, behind China (8.33 million tons) and Poland (5.88 million tons).Coke is a key raw material for steel production (especially blast furnace technology) and demand is closely linked to the growth of the global steel industry. Global coke prices have declined in response to the fall in the price of coking coal, the main raw material, and have fallen more sharply than coking coal, resulting in narrower export margins and increased pressure on production costs. Coke industry by-products include hazardous waste, which needs to be balanced between environmental protection and utilization as a raw material for chemical and manufacturing industries. The Indonesian Coke Business Association was established in early 2025, approved by the Ministry of Justice and Human Rights, and inaugurated in May. The goal is to serve as a coordination platform between the government and businesses to promote favorable policies, ensure environmental sustainability, and strengthen Indonesia's position in the global coke supply chain. The Chairman of the Association called on the government to provide practical support, including streamlining export licenses and providing guidance on plant management, including environmental aspects, in order to alleviate cost pressures and enhance competitiveness. Coke has a strategic value as a reducing agent and heat source, which is essential in the conversion of iron ore into molten iron.