Indonesia's Coal Production & Export

Indonesia is one of the world's greatest producers and exporters of coal. Since 2005, when it overtook Australia, the u . s . a . is the main exporter in phrases of thermal coal. A significant component of its exported thermal coal consists of the medium-quality type (between 5100 and 6100 cal/gram) and the low-quality kind (below 5100 cal/gram) for which large demand originates from China and India. According to information by way of Indonesia's Ministry of Energy and Mineral Resources, Indonesian coal reserves are estimated to closing around eighty three years if the modern rate of manufacturing is to be continued.

Regarding international coal reserves, Indonesia currently ranks 9th, containing roughly 2.2 percent of whole tested global coal reserves according to the most current BP Statistical Review of World Energy. Around 60 percentage of Indonesia's total coal reserves consists of the more cost-effective lower exceptional (sub-bituminous) coal that consists of much less than 6100 cal/gram.

There are severa smaller pockets of coal reserves on the islands of Sumatra, Java, Kalimantan, Sulawesi and Papua but the three largest regions of Indonesian coal resources are:

1. South Sumatra
2. South Kalimantan
3. East Kalimantan

The Indonesian coal industry is instead fragmented with solely a few large producers and many small gamers that personal coal mines and coal mine concessions (mainly in Sumatra and Kalimantan).

Since the early 1990s, when the coal mining area was once reopened for foreign investment, Indonesia witnessed a robust extend in coal production, coal exports and home sales of coal. The latter, however, has usually been alternatively insignificant as home consumption of coal is fairly small in Indonesia. But in latest years there has been a rapid amplify in domestic coal sales because the Indonesian authorities is committed to its formidable energy application (implying the building of a range of power plants, often coal-fired due to the fact Indonesia has plenty of coal reserves). Moreover, various large Indonesian mining groups (for instance coal miner Adaro Energy) have multiplied into the strength sector as extended low commodity fees made it unattractive to continue to be targeted on coal exports, therefore turning into integrated energy companies that consume their very own coal.

Roughly between 70-80 percent of Indonesia's coal manufacturing is exported abroad, the the rest is bought on the home market.