IEA Expects Coal Demand to Peak in 2030
The International Energy Agency (IEA) expects global coal demand to peak in 2030, with future market dynamics determined by China, India, Indonesia, and several Southeast Asian countries, where about half of coal demand is used for power generation. The IEA believes that the coal outlook for these countries depends on the power system's ability to absorb natural gas and the capacity of newly added renewable energy (EBT). By 2035, EBT capacity in developing countries will increase by an average of over 600 GW per year, enough to drive a sustained decline in coal demand. However, if the trend of EBT and natural gas absorption stalls, coal demand could rebound.
Indonesia Restricts Investment in New Nickel Intermediate Product Smelters
Indonesian Government Invites Foreign Investment in Steel Mills to Counter Import Impact
Indonesia Restricts New Nickel Smelter Construction to Address Oversupply
Indonesia Expects Coal Production Below 700 Million Tons in 2026
Indonesia's Steel Demand Mostly Dependent on Imports from China
The Deputy Minister of Industry recently pointed out at a working meeting of Commission VI of the House of Representatives that Indonesia's steel industry faces a severe supply-demand imbalance, with approximately 55% of domestic demand relying on imports, most of which come from China. Meanwhile, the domestic steel industry's capacity utilization rate is only about 50%, resulting in significant idle capacity. The root cause lies in the singular production structure, with domestic steel production mainly concentrated in construction and infrastructure sectors. Production of specialty steel required for high-value-added fields such as automotive, shipbuilding, and heavy machinery is limited, despite substantial market demand for such steel. Additionally, Indonesia's steel industry faces aging production equipment
Indonesia Accelerates Coal-to-DME to Reduce LPG Import Dependence
The Ministry of Energy and Mineral Resources (ESDM) is accelerating energy downstream projects, focusing on developing coal-to-dimethyl ether (DME) as a substitute for liquefied petroleum gas (LPG). Currently, Indonesia's LPG demand remains highly dependent on imports, increasing by approximately 1.2 million tons annually, with demand expected to reach 10 million tons by 2026. President Prabowo recently held a limited meeting at the Merdeka Palace, demanding the acceleration of 18 downstream projects worth over IDR 600 trillion, targeting operations by 2026. These projects cover fisheries, agriculture, and energy and mineral sectors, aiming to boost economic growth,
Chinese Investors Interested in Investing in Indonesia's Steel Industry
Deputy Minister of Industry recently stated that the government is attracting new investments for the steel industry to reduce excessive dependence on imports. Currently, 55% of Indonesia's steel consumption relies on imports, mainly from China, and the domestic steel industry's capacity utilization rate is only 52%. Companies from multiple countries (including Europe, China, and Vietnam) are interested in building factories in Indonesia, and some plan to relocate their factories to Indonesia. He called on these countries to directly invest and set up factories in Indonesia in order to enter the domestic market and compete fairly with existing local enterprises. Investment is key to solving the steel industry's problems. If foreign companies build factories in Indonesia, it will help
Indonesian Investment Enterprise Plans to Directly Invest in Coal-to-Dimethyl Ether Project
CEO of the national sovereign wealth fund BPI Danantara stated that the institution may directly invest in the coal-to-dimethyl ether (DME) project to replace liquefied petroleum gas (LPG) imports. Currently, it is evaluating potential technology partners and investment plans. Data from the Ministry of Energy and Mineral Resources shows that the country's annual LPG consumption is about 8.5 million tons, but domestic production capacity is only 1.3 million tons, with the remaining 7 million tons relying on imports. Previously, the Minister of Energy and Mineral Resources revealed that European and Korean companies are interested in forming a consortium to invest in this project, and Chinese companies have also expressed interest. State-owned coal mining company PTBA confirmed
Chinese Companies Interested in Participating in Waste-to-Energy Projects
Deputy Minister of Energy and Mineral Resources recently stated that the Waste-to-Energy Power Plant (PLTSa) project has attracted investors from many countries, especially in terms of technology. Currently, the ministry is working with investment management agency Danantara to identify technology partners to ensure efficient project implementation. At least companies from three countries are interested in participating in the project: Japan, Europe, and China. He stated that selection will be based on technology suppliers, giving priority to solutions that can generate energy efficiently and whose power can be purchased by state electricity company PLN.
UI, Huayou, and Tsinghua Jointly Build Metallurgical Research Center
The President of the University of Indonesia (UI) recently announced a strategic partnership with China's Huayou Group and Tsinghua University to build a world-class metallurgical research center on campus, forming a "golden triangle" cooperation model. The collaboration will create advanced industrial laboratories and teaching factories, fully funded by Huayou Group. The cooperation includes seven strategic projects: scholarship programs, priority recruitment of UI graduates, joint research, ESG sustainable development, and tripartite cooperation mechanisms. Huayou Group, as a global giant in the nickel-cobalt industry, has invested US$11 billion in Indonesia over the past five years, creating 20,000 jobs
Indonesia to Launch 18 Downstream Projects Next Year Involving 600 Trillion Rupiah Investment
Indonesia plans to launch 18 downstream industry projects in 2026, with a total investment exceeding 600 trillion rupiah, expected to create 270,000 jobs. The Minister of Energy and Mineral Resources stated that the projects align with President Prabowo's directive to accelerate downstreaming in the fisheries, agriculture, and energy and mineral sectors. 67% of these projects are located outside Java Island to promote regional balanced development. Key projects include: West Kalimantan aluminum smelter (60 trillion rupiah), multiple coal-to-dimethyl ether projects (164 trillion rupiah), Central Sulawesi nickel stainless steel pro