Indonesia, a Major Coal Producer, Grapples with Energy Shortages Amid Rising Costs and Output Challenges

Indonesia, one of the world's largest thermal coal producers, is facing challenges in maintaining its energy supply, with businesses bearing the brunt of shortages. Last year, mining quotas were reduced by nearly a quarter to boost prices, and rising costs linked to the war in Iran have further slowed output. This situation, where fossil fuels account for two-thirds of the nation's electricity, has prompted President Prabowo Subianto to intervene, signaling a significant development in global commodity and energy markets with macroeconomic implications for Indonesia.