After the defense industry, the natural resources corporations are the big winners of the Russian attack on Ukraine.

Indonesia is still in the shadow, although Southeast Asia's largest economy was the world's largest coal exporter with around 455 million tons in 2021.

Christopher Hein

Business correspondent for South Asia/Pacific based in Singapore.

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With a record price of more than 400 dollars for a ton of coal, the mining companies are enjoying a bonanza.

The high price is still mainly due to speculation, because Moscow has so far served the vast majority of its supply contracts.

However, America and Great Britain have announced that they will cut Russian energy imports.

As early as the first week of March, Hendra Sinadia, Managing Director of the Indonesian Coal Miners' Association, said his companies had received inquiries from Europe.

In the autumn of last year, the previous maximum price was $269 per ton.

Even then, the share prices of Indonesian coal companies had reached record highs.

The state-owned company Bukit Asam, for example, reported the highest profit in its company history, an increase of 230 percent.

In those months, China's blockade of Australian coal fueled demand from the substitute supplier.

With an annual export of around 350 million tons, Australia is number two on the list ahead of Russia, which exports around 220 million tons of coal.

Now, however, shareholders are hoping for a long-term turnaround, because numerous countries are looking for a substitute for Russian coal due to the sanctions.

Adaro Energy Indonesia was the winner, up 29 percent, followed by Indika Energy and Bukit Asam.

However, the shareholders cannot really enjoy the price jumps - because more would be possible.

But the Indonesian government is ahead of that.

Because it limits the export of mineral resources if the mining companies do not increase the added value in their own country - from Jakarta's point of view it is necessary to build up jobs and technology in the country, for example through smelting works.

In addition, the promoters are forced to reserve a quarter of their production volume for Indonesia's own consumption.

However, the price for this is only 70 dollars a ton – measured against the world market price, the companies are therefore forced to subsidize the domestic market.

The managers have tried to undermine that.

But the response from Jakarta was to ban all exports in January.

Stricter penalties now apply.

The development groups have understood the signs from the capital: The Indonesian market needs to be served, only then can the high margins be pocketed abroad.

This increases the chances for the Indonesians with every day that the sanctions against Russia last or are even tightened.

The economists at the energy analysis company Wood Mackenzie see opportunities for the sale of coal from the islands primarily in Japan and South Korea, but also to Europe.

Even if Europe is supposed to be supplied primarily from South Africa and Colombia, the chances for the Indonesians are good overall.

Analysts don't see demand priced in yet.

And the government is also expecting an 8 percent increase in production to 663 million tons this year.

If 166 million tons remain in the country, exports increase by a good 40 million tons at high world market prices.