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Coal Still Key to Indonesia’s Growth, Kalimantan Critical to Economy, Officials Say

Erfan Maruf
July 10, 2025 | 11:50 am
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Ships carrying coal cross the Mahakam River, Samarinda, on Feb. 18, 2025. (Antara Photo/M Risyal Hidayat)
Ships carrying coal cross the Mahakam River, Samarinda, on Feb. 18, 2025. (Antara Photo/M Risyal Hidayat)

Samarinda. Kalimantan Island holds a vital role as the national energy hub. According to data from the Energy and Mineral Resources Ministry, in 2024, Kalimantan contributed 688 million tons of coal production, accounting for 82 percent of the country’s total coal output.

According to Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Minerals and Coal at the Energy and Mineral Resources Ministry, around 41 percent of power plants in Indonesia still rely on coal, and 70% of that coal supply comes from Kalimantan.

"Just imagine living without electricity because there’s no coal. We need electricity to power our computers or laptops, even our phones need electricity. So, whenever we receive a phone call, we should remember coal as the energy source behind it," said Rita in Samarinda, East Kalimantan, on Wednesday.

Furthermore, Rita added that non-tax state revenue from the mineral and coal sector reached Rp 140,5 trillion (%8.66 billion). This contribution accounts for 52 percent of the total non-tax state revenue. 

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"So, minerals and coal driving the Indonesian economy is not just talk, it’s the reality. To achieve the vision of a Golden Indonesia, coal plays a crucial role in driving national economic growth," she said.

Rita also reminded stakeholders that despite the country’s reliance on the coal industry, mining operations must remain environmentally friendly and responsible. "But remember, these resources must be managed responsibly. Environmentally sound practices must be prioritized," she stressed.

Priyadi, Chairman of the Indonesian Coal Mining Association, said coal is more than just a commodity; it is a development instrument that opens access, drives economic growth, and shapes new civilizations.

Amid global pressures, from declining prices to geopolitical uncertainties, the national coal industry is seen as needing to become increasingly adaptive. Priyadi underlined that socially and ecologically responsible mining practices must become a shared commitment.

“This industry must remain strong, but it must also be socially and ecologically responsible to ensure sustainability,” he concluded.

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