Strait of Hormuz blockage prompts multiple countries to turn to coal for "emergency" relief

Ask AI · How will Indonesia’s coal policy adjustments change the global market?

On March 27, according to CCTV Finance and Economics, shipping through the Strait of Hormuz has continued to be disrupted, increasing uncertainty in energy supply for some Asian countries that are highly dependent on imported oil and natural gas. Recently, South Korea, Thailand, and Indonesia have introduced response measures one after another, stepping up coal use and production.

In South Korea, the government has recently decided to strictly implement tail-number restrictions on vehicles in the public sector, and has called on the private sector to actively participate as well. At the same time, the South Korean government also announced that it has scrapped the cap that limited coal-fired power generation to 80% of installed capacity.

In addition, to ease near-term energy supply pressure, countries such as Thailand and Vietnam are currently intensifying efforts to develop domestic coal-fired power generation in order to reduce reliance on imported energy.

Indonesia is the world’s largest exporter of thermal coal, and its export volume accounts for about half of the total global exports. The Indonesian government has recently decided to revise its 2026 annual coal production quota, planning to increase coal output, and is considering prioritizing the coal it produces for domestic use rather than exports. Earlier, the Indonesian government said it is reexamining the coal export tax and plans to raise the tax rate in line with increases in international coal prices.