Thousands of coal miners facing job uncertainty in Indonesia

Coal miners in Indonesia’s East Kalimantan, the country’s biggest coal producing province, are being left in limbo as production idles while prices on the international markets drop.

Thousands have already lost their jobs this year in the wake of a difficult 12 months for the coal industry. It is estimated that 1400 miners have been laid off in the coal producing areas of Kutai Kertanegera and Samarinda in the last two months alone.

Mining companies are reducing operating hours in an effort to cut costs as coal prices remain sluggish around the globe. Production in East Kalimantan is estimated to have dropped by around 60% since the first few months of the year.

Madani, a contractor for Kaltim Prima Coal, Indonesia’s largest coal producer which has operations on East Kalimantan, has around 250 employees. Around 150 of these have been told to not to come to work until further notice. Many more miners at small-scale companies are similarly in limbo.

Written by Lauren Bryant.

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