Unemployment Rises in Indonesia as Coal Miners Cease Production

As a result of current weak market conditions (and even less rosy future forecasts), around 125 coal mining companies have ceased operations in East Kalimantan. Some mines have idled production while they wait for coal prices to rise. Roughly 5,000 people will lose their jobs. Indonesian coal exports fell 18% to 186.8 million metric tons (mt) in the first seven months of 2015 from a year earlier. Meanwhile, the country’s coal production fell 15% to 232.9 million mt over the same period. The Indonesian government recently lowered its coal production target for 2015 from 425 million mt to 400 million mt.