China and Indonesia Coal Trade Present and Future after the 2008 Financial Crisis

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The policy of “zero tariff” has solved the problem of domestic coal using since 2008, but also raised the coal trade between China and Indonesia. However, some factors have affected on the coal trade in recent years, such as the Indonesian raising domestic demand reduced exports and Chinese policies for Indonesian coal imports controls. This article through to analysis the current situation and import and export capacity of the coal trade between China and Indonesia, utilizing the judgment index of regional economics, it is concluded that the comparative advantage of China and the degree of complementary, then illustrates the problems and solution suggestions in the process of coal trade between the two countries, finally prospects the coal trade of China and Indonesia.