Indonesia – An Emerging World Coal Supplier

Indonesia is a developing country in Southeast Asia with a population of some 180 million people. It has a stable political environment and currently enjoys high rates of economic growth. Indonesia has abundant reserves of natural resources, ample for its own needs and for export. Energy resources include oil, gas and coal. The oil and gas industries are well established domestically and for export. In the last few years, though, coal industry development has been rapid. Coal resources from bituminous to lignite amount to more than 30 Gt (33 billion st). That is more than enough to meet domestic needs and provide significant amounts for export. Figure 1 shows coal basins in Indonesia. Coals in Indonesia are generally young steaming coals. They are very low ash and sulfur, high volatile, bituminous B and C. The Indonesian government's state coal company is called Perum Tambang Batubara. The company has actively promoted the development of its coal for domestic and export markets. In particular, the government has placed priority on non-oil exports of which coal is a major element. The government strives to honor all contractural commitments for the export of Indonesian coal from contractor, private and government mines. From 1987 through 1989, coal production has increased from about 3 Mt (3.3 million st) to 9 Mt (9.9 million st). Exports have grown from I Mt (1.1 million st) to 3 Mt (3.3 million st). These are significant increases for a small industry with limited infrastructure. But with growing investment and development, these production and export levels will increase substantially, and Indonesia will be a significant world supplier of coal in the 1990s.