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Coal mining industry in Indonesia.

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Coal main source of energy for power plants

The soaring soaring: see flight; glider.
 or gliding

Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released.
 prices of oil lately has prompted the government to look for alternative sources of energy. The government, which has subsidized sub·si·dize  
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es
1. To assist or support with a subsidy.

2. To secure the assistance of by granting a subsidy.
 oil fuel (BBM BBM Brokeback Mountain (book/movie)
BBM Bureau of Broadcast Measurement
BBM Bachelor of Business Management
BBM Break Before Make
BBM Bread Board Model
BBM Bulk Business Mail
BBM Bahn Brenner Motorsport
). The subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare.  swells with the soaring prices of oil and growing consumption. The government is now aware that it has been late in seeking to develop cheaper alternative sources of energy such as coal that could be used to fuel power plant, cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder.  plant and steel plants.

The government lately has been more serious in seeking to reduce oil consumption and use coal, which is much cheaper to generate power. The government plans to build coal fired power plants (coal PLTU PLTU Pct Line and Trunk Unit ) with a total capacity of 10,000 megawatt meg·a·watt  
n. Abbr. MW
One million watts.

 of electricity power in the next three years The plan has boosted coal production in the country.

World's second largest exporter

The soaring oil prices also lifted the prices of coal in the world market to an all time high in 2005.

Currently, Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago.  has become the second largest producer of coal in the world after Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Three years ago, Indonesia was only the fourth after Australia, China and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . The country's production of coal has risen fast in the past decade. In 1992, the country's coal exports totaled only 15.2 million tons valued at US$ 602.6 million, up to 73.1 million ton valued at US$ 1.76 billion in 2002. In 2005, exports already reached 105 million tons.

Little Interest in Investment

Indonesia is now the second largest exporter of coal in the world but it is only the seventh in production. The country's coal reserves are only 0.5% of the world's total reserves placing the country outside the ten largest in the world.

Under the present production rate the country's proven reserves will be depleted de·plete  
tr.v. de·plet·ed, de·plet·ing, de·pletes
To decrease the fullness of; use up or empty out.

[Latin d
 in 37 years if no new reserves are found. Currently Indonesia is exploiting its coal reserves for the consumption of other countries. It is feared, therefore, some day the country may have to import coal.

The coal market is firm, the price is high and demand growing, but there is little interest shown by investors in coal mining venture. Investors are especially discouraged dis·cour·age  
tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es
1. To deprive of confidence, hope, or spirit.

2. To hamper by discouraging; deter.

 by unfavorable policy and regulations adopted by the government. Currently, the government and the House of Representatives are still studying and preparing a draft law on coal mining. It is not known when the bill will become law. Meanwhile, investors want to see legal certainty A test in Civil Procedure designed to establish that a complaint has met the minimum amount in controversy required for a court to have jurisdiction to hear the case. Under this test, if it is apparent from the face of the pleadings, to a "legal certainty" that the  in the mining sector.

Environmental damage

Illegal mining has been rampant causing problem to investor and damage to the environment. Illegal mining was held responsible for extensive damage to the environment in coal mining areas in East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil  and South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. . Illegal miners destroyed protected forests and steal coal from the mining concession of investors.

Coal Market in the World

Large energy demand in fast growing China and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c.  has contributed to a surge in demand for coal in the world market. Coal demand has also increased in Asean countries, which also are looking for alternative sources of energy to reduce consumption of oil. In the past 5 years, coal trade expanded in volume from 609 million tons in 2000 to 755 million tons in 2004. In 2004, the world's coal consumption was estimated to reach 4,646 million tons.

Part of the coal supplied to the market is the type of steam coal used as a source of electric energy and for boilers. Coking coal is used as fuel for steel factories accounting for only 12% of the total coal consumption in the world.

Indonesia has put behind China and South Africa in coal exports as the two countries have reduced their exports with the growing domestic consumption.

China, with production of almost 2 billion tons of coal, was the world largest producer in 2004, but it was also the largest consumers followed by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and India.

The world's production of coal in 2004, was estimated to reach 4,629 million tons, up 9.4% from 4,231 million tons in 2003. The production did not include brown coal or lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. , which has low calorific value calorific value
The calories or thermal units contained in one unit of a substance and released when the substance is burned.

Based on data issued by the World Energy Council, Indonesia has proven coal reserves of only 4.97 billion tons or 0.5% of the world's total proven reserves. However, according to according to
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

 the Ministry of Energy and Mineral Resources, the country proven coal reserves total 6.9 billion tons.

World Energy Council has proven coal reserves of 909 billion tons including 246 billion tons in the United States, which has the largest reserve in the world.

Structure of Coal Mining Industry in Indonesia

Types of Coal and Specifications

There are two different types of coal--hard coal and brown coal or lignite:

** Hard coal has a calorific value of more than 5,700 kcal/kg (23,26 MJ/kg). Hard coal consists of steam coal, coke, bituminous coal bituminous coal: see coal.
bituminous coal
 or soft coal

Most abundant form of coal. It is dark brown to black and has a relatively high heat value.
 and anthracite anthracite (ăn`thrəsīt'): see coal.
 or hard coal

Coal containing more fixed carbon than any other form of coal and the lowest amount of volatile (quickly evaporating) material, giving it the

** Brown coal has a low calorific value including lignite and sub bituminous coal that can be used as fuel for power plants.

** Steam coal is used by boiler/steam generators and heating ovens. Steam coal includes anthracite and bituminous coal. Its Gross Calorific value is larger than 23,865 kJ/kg (5,700 kcal/kg).

** Coke could be used as a reductor in blast furnace blast furnace, structure used chiefly in smelting. The principle involved in this means of extracting metals is that of the reduction of the ores by the action of carbon monoxide, i.e., the removal of oxygen from the metal oxide in order to obtain the metal. . Its gross calorific value is larger than 23,865 kJ/kg (5700 kcal/kg), which free from dust.

** Sub bituminous coal has a gross calorific value of 17,435 kJ/kg (4165 kcal/kg) and 23,860 kJ/kg (5,700 kcal/kg).

** Anthracite is the highest in quality with calorific value of more than 6900 kcal/kg. It has the characteristics like those of steam coal.

** Lignite has a gross calorific value of less than 4,165 kcal/kg (17,44 MJ/kg) containing volatile matters of more than 31% in dry form. Lignite is often called Low Rank Coal, or Brown Coal.

** Coke is the result of carbonization car·bon·i·za·tion  
1. The process of carbonizing.

2. The destructive distillation of bituminous coal, done in the absence of air in order to obtain coke and other fractions having a greater percentage of carbon than the
 of steam coal under high temperature. Coke is used as a redactor in steel smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. .

Most coal deposits in the country date back to the tertiary age (Geol.) See under Age, 8.

See also: Tertiary
 formed 65 million years ago. Most or 83% of them have brown coal in the category of lignite and sub-bituminous, with a small part (20%) in the categories of Bituminous bi·tu·mi·nous  
1. Like or containing bitumen.

2. Of or relating to bituminous coal.

Adj. 1. bituminous - resembling or containing bitumen; "bituminous coal"
 and Anthracite.

Indonesian coal is known to have low dust and sulfur sulfur or sulphur (sŭl`fər), nonmetallic chemical element; symbol S; at. no. 16; at. wt. 32.06; m.p. 112.8°C; (rhombic), 119.0°C; (monoclinic), about 120°C; (amorphous); b.p. 444.674°C;; sp. gr. at 20°C;, 2.  contents, therefore, is more suitable to function as fuel or as steam coal causing less pollution.

South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north.  has the largest coal deposits

Coal reserves are found in various areas in Sumatra Sumatra (smä`trə), island (1990 pop. 36,471,731), c.183,000 sq mi (473,970 sq km), Indonesia, in the Indian Ocean along the equator, S and W of the Malay Peninsula (from which it , Kalimantan Kalimantan: see Borneo. , Java, Sulawesi Sulawesi (s'läwā`sē), formerly Celebes (sĕl`əbēz), island (1990 pop. 12,511,163), c.  and Papua Papua, province, Indonesia
Papua (păp`ə, –y
. The largest deposits are found in South Sumatra, East Kalimantan and South Kalimantan.

According to a latest estimate, Indonesia has a total reserve of 57 billion tons but proven reserves are only 6.9 billion tons that were considered profitable, but with the soaring prices of coal, the reserves considered feasible for exploitation have increased to 12.4 billion or the same as the measured deposits.

Status of coal mining companies

Coal mining industry has expanded fast after the government invited foreign investors to venture in coal mining in 1983 under working contract. (KK). Previously coal mining was done only by two state companies which were later merged into PT Tambang Coal Bukit Asam (PT BA).

The first working contract was signed in 1983 by 10 companies of which 9 already producing at present such as PT Adaro Adaro can refer to:
  • Adaro (mythology), a race of sea spirits from the mythology of the Solomon Islands
  • Adaro (company), a Spanish aircraft manufacturer
, PT Kaltim Prima Coal, PT Arutmin, which now dominate coal production in the country.

Later the government signed second generation of KK between 1993 and 1996 with 18 other companies of which 8 have been operational and 4 have quit or cancelled investment.

In 1996, through a presidential decree decree, in law, decision of a suit in a court of equity. It is the counterpart in equity of the judgment in a court of law, although in those jurisdictions where law and equity have merged, judgment is sometimes used to include both.  No. 75/1996, renew coal mining pattern covering investment aspects through deregulation Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Traditional areas that have been deregulated are the telephone and airline industries.
, simplification of procedure, and contracts. One of the changes concerned Coal Cooperation Contract/CCC becoming Coal Contract of Work (CCOW CCOW Clinical Context Object Workgroup
CCOW Channel Control Order Wire
CCOW Control Channel Order Wire
CCOW Contributing to Coalition Operations Worldwide
CCOW Computer Care on Wheels (Brantford, Ontario, Canada) 
), for foreign and domestic contractors.

The government also issued a presidential decree No. 85/1996, returning the authority over coal mining previously held by PT Persero Tambang Coal Bukit Asam (PT BA) to the government represented by the General Mining Directorate General.

The authority over coal mining (KP) and coal mining working agreement (PKP PKP Public Knowledge Project (Canada)
PKP Public Key Partners (vendor)
PKP Penetrating Keratoplasty (cornea graft)
PKP Polskie Koleje Panstwowe
2B) is held by the minister in coordination with governors and regents/mayors, in line with their respective authorities. It was also regulated that contractors (KK) and (PKP2B) are required to hand over 13.5% of their production in cash to the government (based on GOB Gob (gŏb), in the Bible, town, SW ancient Palestine.  prices).

Most of the present coal producers are from the third generation of working contract (KK), but the largest producers are from the first generation. Until 2005, more than 140 companies signed working contracts, but now only 83 of them still active including 27 already producing coal.

The government has also issued regulation on small mining companies holding coal Mining Authority (KP). KP holders include firm with the status of limited company and cooperatives.

Based on the law No. 22 in 1999, regents are authorized to issue KP license for to operate small mines.

Generation I contractors control coal resources

Most coal resources in the country are controlled by first generation contractors and state coal mining company PT Tambang Coal Bukit Asam (Persero). Among the holders of Generation III contract there are only two contractors having coal resources of more than 1 billion tons of coal namely PT Pendopo A pendopo is a fundamental element of Javanese architecture; a large pavilion-like structure built on columns. Either square or rectangular in plan, it is open on all sides and provides shelter from the sun and rain, but allows breeze and indirect light.  Energi Coal in South Sumatra and PT Yamabhumi Palaka in West Kalimantan West Kalimantan (Indonesian: Kalimantan Barat often abbreviated to Kalbar) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan, the Indonesian part of the island of Borneo. Its capital city Pontianak is located right on the Equator line. , but the two companies are still in the process of explorations.

PT Yamabhumi is the only one signing working contract in West Kalimantan and finding large coal deposit of 4.21 billion tons.

PT Kaltim Prima Coal, the largest coal mining company

Large coal mining companies generally hold the first Generation Working Contract and they are generally foreign investment companies, which, based on their contract are required to divest To deprive or take away.

Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money.
 the majority of their shares to local partner after operating for more than 10 years.

The divestment divestment to strip one's investment from an entity.  process, however, is not always running smoothly. For example, PT Kaltim Prima Coal (KPC "Keeping parents clueless." See digispeak. ), the country's largest coal producer and exporter, could not yet finished the process of divestment after years of negotiations. KPC started commercial operation in 2992, therefore it should have sold 51% of its shares to local investors in 2002, but the process was delayed as the East Kalimantan regional administration has not yet fully accept the agreement reached between KPC and the central government.

Lately, PT Adaro, the country's second largest producer, also faced dispute among its shareholders over the sales of the former stake of the Swabara Group by Deutsche Bank to PT Dianlia, which is owned by Edwin Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith.  Soeryadjaya. Deutsche Bank earlier seized seized (seised) n. 1) having ownership, commonly used in wills as "I give all the property of which I die seized as follows:...." 2) having taken possession of evidence for use in a criminal prosecution. 3) having taken property or a person by force. (See: seisin, seizure)  the stake from the Swabara Group and sold it to Dianlia.

With the surge in the prices of coal, many coal mining companies, which almost collapsed in the wake of the monetary crisis in 1997/1998, now regain strength with bright prospects. As a result many investors tumble over each other to take control of a coal mining company now.

Bumi Resources Group/ Borneo Borneo (bôr`nēō'), island (1990 pop. 9,102,906), c.287,000 sq mi (743,330 sq km), largest of the Malay Archipelago and third largest island in the world, SW of the Philippines and N of Java.  Lumbung Energi

PT Bumi Resources (PT BR) became the country's largest producer of coal after acquiring KPC and PT Arutmin Indonesia, which is the fourth largest coal mining company. PT Bumi Resources acquired 80% of Arutmin from BHP BHP

blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries.
 Mineral Exploration Inc in 2001 and bought the remaining 19.9% later from PT Ekakarsa Yasakarya Indonesia.

In 2003, Bumi Resources acquired the entire shares of PT Kaltim Prima Coal through its subsidiary Sangatta Holdings Limited and Kalimantan Coal Limited, making it the country's largest producer of coal producing up to 45 million tons of coal in 2005.

However, in Mach See Mach kernel.

Mach - An operating system kernel under development at Carnegie-Mellon University to support distributed and parallel computation. Mach is designed to support computing environments consisting of networks of uniprocessors and multiprocessors.
, 2006, Bumi Resources decided to sell its entire stake in PT KPC and PT Arutmin to PT Borneo Lumbung Energi at a price of US$ 3.2 billion. Bumi Resources decided to sell 95% stake in PT Kaltim Prima Coal (KPC) and 100% stake in PT Arutmin Indonesia. PT Borneo Lumbung is a unit of an investment company PT Renaissance Capital Renaissance Capital is a major investment bank concentrating on Russia and the Commonwealth of Independent States (CIS). Renaissance Capital is wholly owned by management and employees. Major lines of business are: sales and trading, investment banking and asset management. , which is partly owned by Suryadinata Sumantri and Samin Tan TAN

See tax anticipation note (TAN).
, both former consultants.

Bumi, after selling its productive assets acquired PT Pendopo Energi, which has large coal reserve in South Sumatra, but not yet producing. Bumi plans to build a coal liquefaction liquefaction, change of a substance from the solid or the gaseous state to the liquid state. Since the different states of matter correspond to different amounts of energy of the molecules making up the substance, energy in the form of heat must either be supplied to  plant using coal to be supplied by PT Pendopo Energi Batubara in South Sumatra. With the take over of KPC and Arutmin from Bumi Resources, PT Borneo Lumbung Energi became the country's largest coal producer.

Kaltim Prima Coal

PT Kaltim Prima Coal (PT KPC) in East kalimantan, was established by Rio Tinto Rio Tinto may refer to:
  • Rio Tinto (Paraíba), in Paraíba State, Brazil.
  • Río Tinto (river), a river in Spain.
  • Rio Tinto Group, a multinational mining company.
  • Rio Tinto (Gondomar), a civil parish in the municipality of Gondomar, Portugal.
 and BP in 1991 and began operation in 1992 with three coal mines namely Sangatta, Melawan and Bengalon mines.

The concession area of KPC is located in the area called Pinang Pinang or Penang (both: pənăng`), state (1991 pop. 1,065,075), c.400 sq mi (1,040 sq km), Malaysia, on the Strait of Malacca.  Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. , which has big reserves of high quality coal. Based on a study in 2005, KPC has a measured reserve of 525 million tons and indicated reserve of 76 million tons and potential reserve of 601 million tons.

KPC operates one of the largest open pit mines in Indonesia with a depth of 0.15 -15 meters. Its largest mine in Sanggata is equipped with conveyor belt conveyor belt

One of various devices that provide mechanized movement of material, as in a factory. Conveyor belts are used in industrial applications and also on large farms, in warehousing and freight-handling, and in movement of raw materials.
 of 13.2 km between the mine and its coal piling terminal in Tanjung Bara from which coal is shipped to buyers, The terminal could accommodate 220,000 DWT DWT
1. deadweight tonnage

2. deadweight tons

The job of mining is handled by Thiess Contractors and PT Pama Persada in Sangatta and Melawan. In Bengalon, KPC named PT Darma Henwa as the contractor.

In 2005, coal production of PT KPC totaled 28.2 million tons relegating PT Adaro as the largest producer in Indonesia. Coal produced by KPC has a calorific value of 5048--6988 Kcal/kg. Around 97% of its production is exported mostly to be used as power plant fuel. Around 79% of its sales are on contract and 21% are disposed dis·pose  
v. dis·posed, dis·pos·ing, dis·pos·es
1. To place or set in a particular order; arrange.

 of on spot market.


PT Arutmin, which was established by BHP Mineral Exploration Inc, was a pioneer among coal mining contractors holding the Generation I working contract. The company signed its working contract in 1981. Now Arutmin operates four coal mines in East Kalimantan namely Satui, Senakin and Batulicin, which hold high calorie calorie, abbr. cal, unit of heat energy in the metric system. The measurement of heat is called calorimetry. The calorie, or gram calorie, is the quantity of heat required to raise the temperature of 1 gram of pure water 1°C;.  coal of 6,00-6,00 Kcal/kg and Asam-asam having coal with a lower calorific value of 5.000 kcal/kg, which is suitable for power plant fuel.

By June, 2004, the coal reserves of Arutmin totaled 538 million tons including 253 million tons in proven deposit and 105 million tons in probable reserve. Of the total, 170 million tons are thermal coal with low content of sulfur and 250 million tons are sub-bitumen with low calorific value.

The coal mines of Arutmin are closer to the coast , therefore, transport costs are cheaper and the ground is sloping that stripping is easier. Currently the Satui mine has exceeded its peak productivity, therefore, Arutmin has started deep mining in that area and move more activity to mines having coal with low calorific value.

In 2005, Arutmin produced 16.8 million tons of coal and 93% of the production was exported to Japan, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.  and Europe Europe (yr`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Around 89% of its sales are on contract.

Adaro Coal

PT Adaro was established by Australia New Hope Corporation in cooperation with Swabara Group through PT Asminco Bara Utama. Its coal mines are in Tanjung, South Kalimantan, which started production in 1991. The coal mines have a total reserve of 3 billion tons but commercially exploitable deposits are only 600 million tons.

Its coal has a low sulfur content of 0.1%, ash content of 1.2% and low nitrogen content that it is good for power plant fuel. Its coal layers are thick as thick as 30 meters as against 6 meters in other deposits. Its coal product is sold with the brand of Envirocoal.

PT Adaro operates open pit mines using bulldozers, excavators, loaders and trucks. It hardly need exploding, therefore, mining cost of cheaper. However, it has to build road as long as 74 kilometers to the stockpile stock·pile  
A supply stored for future use, usually carefully accrued and maintained.

tr.v. stock·piled, stock·pil·ing, stock·piles
To accumulate and maintain a supply of for future use.
 place and to the Barito river Barito is a river in South Kalimantan, Indonesia which passes through the city of Banjarmasin.  from which the coal is transported with barges.

In 2005, Adaro produced 26.7 million tons of coal. Around 65% of its coal production is exported such as to Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan , China and India. The rest is sold to power plants of PLN PLN

In currencies, this is the abbreviation for the Polish Zloty.

The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 or IPP (Internet Printing Protocol) A protocol for printing and managing print jobs over the Internet using HTTP. Initially conceived by Novell, Xerox and others, the IETF made it a standard in 2000 that includes authentication and encryption. See printing protocol and LPD. . In 2002, Adaro ownership was taken over from Asminco by Deutsche Bank, over failure to repay a debt to the bank following the monetary crisis. In 1997, Asminco borrowed US$ 100 million from Deutsche Bank to buy the shares of Adaro from PT Tirtamas Majutama and PT Panca Muspan using the shares as collateral.

After the take over, Deutsche Bank sold the shares in 2002 to PT Dianlia Setyamukti, which is owned by Edwin Soeryadjaya,Teodore Rachmat and a number of other businessmen at a price of US$ 42.2 million.

With the take over, the shareholders of PT Adaro included PT Dianlia Setyamukti 51%, MEC MEC Ministério da Educação (Ministry of Education)
MEC Ministerio de Educación y Ciencia (Spain: Ministry for Education and Science)
MEC Mountain Equipment Co-Op
 from the United States 8.2%, and New Hope Corp from Australia 40.8%. Early 2005, New Hope agreed to sell the shares of PT Adaro to its local partner at a price of US$ 378 million.

In June, 2005, an international consortium made up of the Government of Singapore The Government of Singapore is formed by the political party which gains a simple majority in the general elections held in Singapore at least once every five years. It is part of Singapore's political system and supported by the Singapore Civil Service.  Investment Corp., Kerry Group Kerry Group LSE: KYGa, is a major quoted food company headquartered in the Republic of Ireland. It is quoted on the Dublin ISEQ and London stock exchanges. It evolved initially from a local dairy co-op in the Munster region of Ireland. , Goldmand Sachs Investment Inc, and Citigroup Inc, acquired the stake of PT Dianlia at a price of US$ 950 million.

When the coal prices rose, and Adaro posted handsome profit, the old owners accused Deutsche Bank of selling the shares at much too low price, compared to he selling of the stake of New Hope to PT Dianlia and the selling of the shares again t the foreign consortium.

The price was much to low especially if compared to the selling price of KPC and Arutmin of US$ 3.2 billion by Bumi Resources. The legal suit against Deutsche Bank is still in process in a Singaporean court.


PT Kideco Jaya Agung holds the first Generation KK. It operates in Pasir, East Kalimantan. The company has a reserve of 809 million tons. Its type of coal is similar to that of Adaro with low sulfur and ash content, therefore, it is good to fuel power plants.

The majority of its shares are held by energy company Samtan Co. Ltd. From South Korea. It has long term contract to supply coal to a number of power plants in Korea.

Kodeco has open pit mines. Its coal production is transported by trucks to a coal terminal in Tanah Merah Tanah Merah may refer to one of the following places:
  • Tanah Merah, Malaysia, a district in Kelantan
  • Tanah Merah, Singapore
  • Tanah Merah, Australia, a place in Brisbane
  • Tanah Merah, Indonesia, a city in Papua
 spanning a distance of 39 kilometers. In 2005, the company produced 18.1 million tons, up from 16.9 million tons in the previous year.

The company, which signed its contract of works in 1982, was required to divest the majority of its shares to a local investor in 2003. After the process of open tender, PT Indika Inti Corpindo, succeeded in taking over 41% stake in PT Kideco Jaya Agung at a price of US$ 149.65 million. Now the shareholders of Kideco are Samtan Co. Ltd, 49%, PT Indika Inti Corpindo 41%, and PT Source Mitra Jaya 5%.

Indika Group is an offspring off·spring
1. The progeny or descendants of a person, animal, or plant considered as a group.

2. A child of particular parentage.
 of the Subentra Group, formerly owned by Sudwikatmono. One of his children Agus Lesmono founded the Indika Group to carry on the family business.

In cooperation with PT BA and Huadian Group the Indika Group also plans to build a power plant in Sumatra.

Banpu Group

The Banpu Group is a Thai company operating in coal mining industry. It began operation in Indonesia in 1991. It signed the first generation KK with the government through PT Jorong Barutama Breston to operate in South Kalimantan. Later its acquired a number of mining companies n Indonesia such as PT Indominco Mandiri , also a coal mining contractor, PT Trubaindo and PT Kitadin, all already operational.

The Banpu group also has two mining companies Sumatra namely PT Bara Sentosa Lestari and PT MPN MPN Master Promissory Note
MPN Most Probable Number
MPN Medical Provider Network
MPN Mobil Producing Nigeria
MPN Manufacturer's Part Number
MPN Military Personnel, Navy
MPN Mobile Private Network
MPN Managed Private Network
MPN Mode Partition Noise
, which is still in the phase of feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. . The Banpu group, however, plans to sell the two companies as their operating cost is too high.

With four coal mining subsidiaries already producing, the Banpu Group is the fourth; largest coal producer in the country after Bumi, Adaro, and Kideco. In 2005, the Banpu group produced 12.4 million tons of coal. PT Indominco Mandiri contributed 7.4 million tons to the production, PT Jorong Barutama 3 million tons, Trubaindo 1.6 million tons and Kitadin 0.3 million tons.

The Banpu group hopes to increase its production especially from Indominco, which has a reserve of 45 million tons and Trubaindo with a reserve of 52 million tons and Jorong 36 million tons.

PT Bukit Asam

PT Tambang Batubara Bukit Asam (Pesero) Tbk. is a state company established through a merger of two state companies Tambang Batubara Bukit Asam and Tambang Batubara Ombilin.

PT BA has two mining units namely the Tanjung Enim unit in Tanjung Enim, South Sumatra and the Ombilin unit in Sawahlunto, West Sumatra West Sumatra (Indonesian: Sumatera Barat, abbreviated to Sumbar) is a province of Indonesia. It lies on the west coast of the island Sumatra, and borders the provinces of North Sumatra (Sumatera Utara) to the north, Riau and Jambi to the east, and . The Ombilin unit is a deep mine now no longer exploited. Earlier, Chinese investor indicated interest in exploiting the deep mine of Ombilin.

PT BA has large coal reserves namely 1.5 billion tons including 873 million tons in Tanjung Enim, 569 million tons in Cerenti, and 91 million tons in Ombilin. Lignite dominates or 57.7% of its coal reserves, followed by sub-bituminous (37.1%), and bituminous (5.2%).

Most of coal production is disposed of on the domestic market mainly to supply the Suralaya PLTU in Banten. Coal from Tanjung Enim is transported by railway over s distance of 400 kilometers to the Tarahan port in Lampung from which the coal is shipped over the sea.

Transport has often causes a problem especially as the railway could only carry 7.2 million tons a year while PT BA wants to increase its shipment to 10 million tons a year to Suralaya. PT BA, therefore, plan to build new rail track to increase the transport capacity from the mine.

In the past three years its coal production dropped from 10 million tons in 2003 to 8.6 million tons in 2005.

PT BA planned to acquire a number of coal mines in Kalimantan, but now he plan was postponed as the government plans merger of three state mining companies PT BA, PT Timah, and PT Aneka Tambang.

Berau Coal

PT Berau Coal, which operates in Berau, Kalimantan, hold the first Generation KK signed in 1983. The company was established by PT United Tractors and its Japanese partner Nissho Iwai.

Berau Coal has a large reserve of 745 million tons. In 2005 its production totaled 9.2 million tons.

The company has built 33 kilometers of road to facilitate transport of coal to a barge barge, large boat, generally flat-bottomed, used for transporting goods. Most barges on inland waterways are towed, but some river barges are self-propelled. There are also sailing barges.  terminal in Suaran from which coal is loaded to ship in the sea.

In 2004, PT United Tractors sold its shares in the Berau Coal to PT Armadian Tritunggal, which is owned by Jodiono Tosin (former executive of the Salim Group The Salim Group is Indonesia's big­gest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a larg­e flour-milling operation [1]. The group was founded by Sudono Salim. ), David Lansa (the owner of PT Bumi Makmur, the coal mining contractor of PT Berau Coal), and Rizal Risjad (of the Risjadson Group).

In June 2006, the Farallon Capital and a number of Indonesian business leaders were reported seeking to take over Berau Coal from PT Armadian Tunggal but no confirmation of he report.

Production Aspect

Coal Production up 14.3% annually

The country's coal production has increased rapidly in the past five years with KK companies the largest contributor. In the 2000-2005 period, coal. production rose 14.3% annually--from 77 million tons to 150 million tons. Coal production of KK companies rose 16% annually from 61 million to 132 million tons.

The soaring oil prices contributed to the increase in demand for coal boosting production in the country.

Demand for lignite or brown coal is expected to increase especially from PLTUs in the country.

Production by provinces

Kalimantan accounts for more than 90% of he country's coal production. By provinces, East Kalimantan is the largest producer turning out 77 million tons in 2005.

Coal from East Kalimantan is highly competitive because of its closer proximity to growing markets in Asia.

Production by companies

Indonesia's coal production is more than 80% dominated by six producers--Borneo Lumbung Energi (owner of KPC and Arutmin) turning out 45 million tons in 2005, followed by Adaro with production of 26.7 million tons, Kideco 18.1 million tons, Banpu Group 12.4 million tons, Berau 9.2 million tons and PT BA 8.6 million tons.

Individually, the largest producing company is PT Kaltim Prima Coal (PT KPC), which produced 27.64 million tons in 2005, followed by PT Adaro. In 2004 PT Adaro was still the largest producer.

KPC has opened a new mine in Bengalon, which is expected to push up its annual production and keep it as a lead producer.

Technical Aspect

Coal mining methods

There are two coal mining methods--open pit mining and deep mining. Open pit mining is used when coal is found less then 10 meters below the ground surface generally 5-6 meters below the ground surface. Mining could be made only by removing the upper layer of the ground.

Deep mining is used when the coal lies more than 10 meters below the ground up to 100 meters. Drilling, therefore, is needed to create tunnel.

Open pit mines, generally has lignite and sub-bituminous coal Sub-bituminous coal is a coal whose properties range from those of lignite to those of bituminous coal and are used primarily as fuel for steam-electric power generation. , which have low calorific value. Most coal mines in the country are open pit mines both in Sumatra and Kalimantan.

Deep mines generally have bituminous and anthracite coals with high calorific value. Exploitation of deep mines in Indonesia has been made only in Ombilin, Sawah Lunto, West Sumatra.

Process of mining coal and transport

Process of coal mining generally includes removal of the cover layer, mining, reclamation Reclamation

A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process.
 and transport to piling terminal before the coal is shipped to the final destination.

Mining operation covers:

** Land clearing and removal of the ground upper layer to be used later for reclamation after the mine is closed.

** Digging

Shovel and trucks are needed in open pit mining. Stripping ratio (SR) is a ratio in m3 of soil to be removed to produce 1 ton of coal. The closer the coal layers to the ground surface the lower the stripping ratio and the cheaper the mining cost will be. The coal mines of PT Adaro have a low SR of 3-4 and that of PT KPC have a stripping ratio of 6-8.

** Processing and Piling

Coal directly from mines called run-of-mine (ROM), often contain undesired materials like rocks, and mud. The first has to be removed. Processing of coal washing is aimed at guaranteeing quality to meet requirement.

After he processing coal is sent to piling place and to be ready for shipment to end users.

Coal Transportation

Coal is transported with conveyor Conveyor

A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective.
 belts, trucks or railway or barges or through pipes after being mixed with water.

Exports are transported with ships with the types of Handymax (40-60,000 DWT), Panamax (60-80,000 DWT) to ones measuring Capesize (80,000+ DWT). Coal international trade in 2003 totaled 700 million tons and 90% of which were transported by sea. Sea transport may contribute up to 70% to the total transport cost of coal.

At present Indonesia is producing coal in Sumatera and Kalimantan Island. In South Sumatera, PT Bukit Asam is using railways from their stockpile in Tanjung Enim to coal terminal in Tarahan, Lampung. PT BBA BBA
Bachelor of Business Administration
 has three coal terminals. The Tarahan Port in Bandar Lampung Bandar Lampung is the capital province of Lampung, Indonesia. It was formerly called Tanjungkarang-Telukbetung, the names of the two major sections of the city, before being renamed in 1983.  has a 42.5 ha area with a capacity of 12 million tons/year and is able to moor a maximum of 80,000 DWT vessel. The Kertapati Pier pier, in engineering, term applied to a mass of reinforced concrete or masonry supporting a large structure, such as a bridge. When piers are built on ground of poor bearing value, it is often necessary to drive piles to obtain a firm base.  ha a 1.5 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres.  area with a capacity of 2.5 million tons / year and is able to moor an 8,000 DWT barges. The third port port is located in Padang West Sumatera to serve their Ombilin coal mines.

In Kalimantan, where no railways exist, most of inland coal transportation is conducted by trucks and barges. KPC and Indominco have captive captive

said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them.
 coal terminals. Their coals are forwarded to the coal terminals by trucks and belt conveyors.

Currently, Indonesia operates 24 coal loading terminals, including three cape-sized terminals, one panamax terminal and three handy-size terminals, with a total export capacity of more than 75 million MT/year. Four additional coal terminals are planned, including Bengalon by KPC, Sebuku by Cakrawala Sebuku, Bontang by Indominco Mandiri and East Kalimantan by Indexim.

Below is a list of the largest coal loading ports currently in operation in Indonesia.

** The Indonesia Bulk Terminal (IBT (1) (Instructor Based Training) Training courses conducted by human teachers.

(2) (Internet Based Training) Training courses provided via the Internet.
), developed jointly by Consolidated Bulk Handling of Australia and Terminal Batubara Indah, is the latest common-user deep-water port. IBT, which commenced operation in 1997, is located on South Pulau Laut, a large island off South Kalimantan. It lies on major domestic and international shipping routes. IBT has a stockyard stockyard

1. public saleyard where livestock are sold, usually by auction.

2. yards for working cattle or sheep on private property.
 capacity of 800,000 MT and is capable receiving 80,000 DWT vessels. IBT is expanding its storage capacity to 1.6 million MT, with a capacity to handle 200,000 DWT vessels.

** Tanjung Bara Coal Terminal (TBCT TBCT Two B-Channel Transfer ), a 500,000 MT capacity stockpile, was developed by KPC to load its own coal production into ships of up to 200,000 DWT. TBCT is located in north Samarinda, East Kalimantan and has been operational since 1991.

** PT. Dermaga Prakasa Pratama (DPP DPP - Dining Philosophers Problem ), an independent company, developed a deep-water coal terminal located at Balikpapan, East Kalimantan. The facility provides services to coal mining companies operating along the Mahakam River The Mahakam River flows 980 km from the highlands of Borneo, district Long Apari to its mouth in Makassar Strait. The city of Samarinda, the provincial capital of East Kalimantan, lies along the river 48 km (30 mi) from the river mouth. , such as Multi Harapan Utama, Tanito Harum, Kitadin, Bukit Baiduri and Fajar Bumi Sakti. The terminal jetty jetty: see coast protection.  is capable of handling 80,000 DWT bulk carriers.

** Terminal Batubara Indah (TBI TBI 1. Thyroxine-binding index 2. Total body irradiation ) in Cirebon, West Java, has a stockpile capacity of 50,000 MT and a handling capacity of one million MT/year. TBI handles mostly coal requirements of the Cibinong cement plant and other nearby industries, and receives regular deliveries from Adaro, Arutmin and other coal mines in Kalimantan.

To anticipate the increase of coal production in Kalimantan, Government is preparing a study to bulit a railway system in Kalimantan particularly to tranport the coal from Central, East, and South Kalimantan.

Equipment needed

Technology and equipment needed in coal mining depend on the types of the mines and the size of the mining. In open pit mining by major coal mining companies PT Bukit Asam and PT Arutmin the main types of equipment are as follows:

* Bucket A reserved amount of memory that holds a single item or multiple items of data. Bucket is somewhat synonymous to "buffer," although buffers are usually memory locations for incoming data records, while buckets tend to be smaller holding areas for calculations. See hash table, buffer and variable.  wheel excavator ex·ca·va·tor
An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue.

excavator (eks´k
 as digging equipment .

* Belt conveyor as transport equipment from the mines.

* Spreader spreader,
n See condenser.
 to spread the ground in piling place.

* Stacker reclaimer re·claim  
tr.v. re·claimed, re·claim·ing, re·claims
1. To bring into or return to a suitable condition for use, as cultivation or habitation: reclaim marshlands; reclaim strip-mined land.
 to handle coal in stockpile.

* Shovel and trucks to support mining operation.

In open pit mining the main types of equipment are shovels and trucks.

Coal mining operation

There are various mining methods:

First method:

The mining company handles its self every phase of the job using equipment and its workers. The benefit is the continuity of production is better guaranteed, production cost could be reduced such as through greater efficiency by using bucket wheel and conveyor belt.

The disadvantage is that it will need large number of workers that will need more accommodations and facilities. In addition it will need to have or rent sufficient sets of equipment.

Second method:

A company names a sub-contractor to handle certain phases of jobs such as removal of outer layers in open pit mining, digging and reclamation (land fill). The benefit is that it will need no large investment and large number of workers. It also does not need to buy or lease all sets of equipment needed in the operation.

The disadvantage is that the company will continue to rely on other companies for mining technology and completion of work that the risk is greater of failure in finishing the job as scheduled.

The two methods are often combined by large coal mining companies like PT Bukit Asam, which operates large deposits in the area of Air Laya in which mining is handled itself by PT BA by using bucket wheel and conveyor belts to carry coal from the mines to piling place. The job of removing the outer layer of the ground is handed over to a contractor.

Small and medium companies almost entirely rely on contractors to do almost all phases of the jobs as they could not afford to buy expensive heavy equipment.

After the 1998 monetary crisis growing coal mining companies have to relay on contractors to do the mining as they would not want to risk investing in heavy equipment and employ many workers needed in the operation.

In 2002, around 40% of mining companies relied on contractors to the job of coal mining and in 2004, the percentage rose to 60%.

Role of coal mining contractors

The number of coal mining contractors, therefore, has increased with the growing demand for their services. There are 150 mining service companies registered at the energy and mineral resources ministry, but only 20 of them actively operate in the service industry.

Among large contractors dominating the job of mining coal are PT Pama Persada. Perusahaan, PT Thiess Contractors, PT Petrosea, PT Bukit Makmur and PT Darma Henwa.

PT Pama Persada Nusantara as Market Leader

This company is a subsidiary of PT United Tractors Tbk., a heavy equipment assembling company and agent for Komatsu heavy equipment and Nissan dump trucks.

PT Pama is a coal mining contractor starting operation in 1993 producing almost 5 million tons of coal a year. In 2002, its production totaled 28 million tons up 17% from 2001. In 2005 its production totaled 35 million tons.

Its main client is PT Adaro. It handles the job of mining and removing the outer layer of ground in open pit mining.

Its latest project is to mine coal for PT Arutmin Indonesia, in South Kalimantan and for PT Jembayan Muarabara, in East Kalimantan and for PT Tanjung Alam Jaya.

Its other regular clients include PT Indomico Mandiri--Banpu, PT Kaltim Prima Coal, PT Multi Harapan Utama, PT Tambang Batu Bara Bukit Asam, and PT Kideco Jaya Agung.

PT Pama Persada had a 42% share of the market of coal mining contracts in 2004 and earned a total income of Rp 3.8 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.
 that year. In 2005 its income shot up to Rp 6 trillion.

PT Thiess Contractors Indonesia

Thiess started operation in Indonesia in 1972, and since then it has take part in the construction of a number of projects in the country including the Halim Perdana Kusuma airport of Jakarta, the Simpang airport of Pekanbaru, pipeline project in Binolirik, Sumatra and power plant in Balikpapan.

In 1984, Thiess sold its business unit in the country. In 1998 it restarted operation in the country through PT. Thiess Contractors Indonesia with the foreign investment facility. Since then PT. Thiess Indonesia has carried out a number of projects valued at US$ 1.3 billion in the country related to mining sector, oil and gas sector and infrastructure sector.

Big projects the company has built include:

Projects of PT. Kaltim Prima Coal, in East Kalimantan. From June, 1999 to August 2002, PT Thiess Contractors Indonesia in Sangatta mined 5.5 million tons of coal and removed overburden o·ver·bur·den  
tr.v. o·ver·bur·dened, o·ver·bur·den·ing, o·ver·bur·dens
1. To burden with too much weight; overload.

2. To subject to an excessive burden or strain; overtax.

. Its other jobs were to move oil stockpile, rehabilitate re·ha·bil·i·tate
1. To restore to good health or useful life, as through therapy and education.

2. To restore to good condition, operation, or capacity.
 mines and mine coal using Auger auger (ô`gər): see drill.

Tool (or bit) used with a carpenter's brace for drilling holes, usually in wood. It looks like a corkscrew and produces extremely clean holes, almost regardless of how large the bit is.
. Mining with Auger gave additional coal production of 275,000 tons for KPC.

Early September 2002, PT Thiess Contractors Indonesia received a new contract to build 5.5 kilometers of coal transport road to be completed in January, 2003. The contract included removing ground outer layer and overburden as well as mining of 230,000 tons of coal in the Pelikan open pit mine.

Projects of PT. Arutmin, in South Kalimantan. Thiess has long business ties with PT. Arutmin since PT. Arutmin started operation in Indonesia in 1989, when Thiess was given the job of building infrastructure project to facilitate the mining operation.

In June, 2002, PT. Arutmin and PT. Thiess reached an agreement under which Thiess took over the entire job of coal mining for PT. Arutmin in South Kalimantan including operation and repair of heavy equipment.

Thiess did all the jobs of mining operation including digging of overburden, coal mining, coal transport and loading to ships, rehabilitation rehabilitation: see physical therapy.  of mining areas, mining plan. It guarantees coal quality.

Senakin mine produces 450,000 tons of washed coal a month.

Projects of PT. Kideco Jaya Agung, in East Kalimantan. Since 1993, PT Thiess Contractors Indonesia played an important role in the mining of coal for Kideco in East Kalimantan.

It has handled jobs valued at more than US$ 287 million. It produced 2.5 million tons of coal for Kideco, processing it and transported it to over a distance of 36 kilometers to the port site using trailers with a carrying capacity carrying capacity

the number of animal units that a farm or area will carry on a year round basis, including that needed for conservation of winter feed. Usually stated as dry cows or dry sheep equivalents per hectare.
 of 100 tons. Sets of equipment in the projects includes 360-ton and 240-ton excavators loading 32, 150-ton and 100-ton haul trucks, 13 units of bull dozers. The income of the company in 2004/2005 was more than US$ 360 million.

PT BUMA BUMA Bounce Up My Ass (military slang)  

PT Bukit Makmur Utama Mandiri (BUMA) is the main contractor for the coal mines of Berau Coal. Bukit Makmur is a subsidiary of the BUMA group, which is also a 50% owner of PT Armadian Tritunggal, which itself is the majority shareholder of Berau Coal.

PT Bukit Makmur was established in 1988 by Johan Lensa and family. It is also known to operate large fleet of Hino trucks. Before being a mining contractor, PT Bumi Makmur operates in the building of oil palm plantations PLANTATIONS. Colonies, (q.v.) dependencies. (q.v.) 1 Bl. Com. 107. In England, this word, as it is used in St. 12, II. c. 18, is never applied to, any of the British dominions in Europe, but only to the colonies in the West Indies and America. 1 Marsh. Ins, B. 1, c. 3, Sec. 2, page 64.  such as those of the Astra Group, and the Salim Group. With the large fleet of Hino trucks Bukit Makmur became a coal mining contractor. PT BUMA also a contractor for Adaro, Kideco, Lanna Harita, etc.. In 1998 the income of PT BUMA was recorded at only US$ 5 million but in a few years later in 2005 its posted an income of US$ 279 million and he income is forecast to rise to US$ 390 million in the following years.

Coal Mining Cost

The coal mining costs are determined by stripping ratio, the distance between mines to stockpile in crushing crushing

deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying.
 plant and the distance between the crushing plant and the sea port. See the following table.

Based on the data from DPMB DPMB Don't Pass Me By (Beatles song)
DPMB Defense Programs Management Board
 the lowest price of coal at the mouth of mine with stripping ratio of 1 is US$ 6 per ton not including costs of reclamation, royalty, and shipping cost at port. If he SR is higher the coal mining cost is higher.

Based on a calculation by the Institute of Energy Economics of Japan in 2001, coal procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  cost in Kalimantan was US$ 25/ton for coal with a calorific value of 5,900 kcal/kg. Now with the soaring oil prices, the cost of coal procurement is estimated to rise 15%-25% to US$ 28--US$ 32/ton

According to the International Energy Agency (IEA IEA International Energy Agency
IEA International Environmental Agreements
IEA International Association for the Evaluation of Educational Achievement
IEA Institute of Economic Affairs
IEA Inferred from Electronic Annotation
IEA International Ergonomics Association
), which groups industrial countries, coal procurement cost on FOB FOB 1) adj. short for Free on Board, meaning shipped to a specific place without cost. 2) Friend of Bill (Clinton). (See: Free on Board)  from Kalimantan is around US$ 23-US$ 40 /ton or averaged US$ 26/ton, broken down as follows:

* Cost of mining operation US$ 8--18 /ton (averaging US$ 10.5/ton)

* Capital cost US$ 7.5 /ton

* Transport cost US$ 7.5/ton

* Loading/unloading cost US$ 3 /ton

IEA said coal open pit mining cost in Kalimantan is the second lowest in the world after in Wyoming open pit mines in the United States.

Government Policy in Energy Sector

Until now oil and natural gas still the main sources of energy in Indonesia, which exports of most of its cheap sources of energy.

However, with the soaring oil prices, the government announced a new energy policy in January, 2006 to reduce dependence on oil as a source of energy as follows:

--The role of oil is to be reduced to 26.2% in 2025

--The role of natural gas is to be raised to 30.6% in 2025

--The role of coal is to be raised to 32.7% in 2025

* Utilization of brown coal

* Coal Liquefaction

* Briquette bri·quette also bri·quet  
A block of compressed coal dust, charcoal, or sawdust and wood chips, used for fuel and kindling.

[French, diminutive of brique, brick

--The role of geothermal ge·o·ther·mal   also ge·o·ther·mic
Of or relating to the internal heat of the earth.

 is to be raised to 3.8% in 2025

--The role of renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation.  is to be raised to 4.4% in 2025

--Fulfilling fossil energy in the country by phasing out export.

See the following table.

The contribution of coal to the country's energy consumption is forecast to more than double in the next 20 years.

Decline in Investment Interest

Ironically, when the coal prices are climbing, there has been no new investment in coal mining industry since 1998. Investment in coal mining has declined since 1998. In 1998, investment in coal mining was valued at US$ 1.9 billion down to US$ 174 million in 2003.

Meanwhile it is estimated that the country needs US$ 750 million in investment for explorations if it is to maintain its present level of production. Now investment is mainly for exploitations and expansion of the existing mines. Investors choose to acquired the existing mines rather than investing in explorations for new deposits starting with feasibility studies.

PT BA, for example, has stopped explorations and started eyeing coal mines already in operation in Kalimantan. A number of other local and foreign mining companies also show the same inclination inclination, in astronomy, the angle of intersection between two planes, one of which is an orbital plane. The inclination of the plane of the moon's orbit is 5°9' with respect to the plane of the ecliptic (the plane of the earth's orbit around the sun). . There are a number of factors discouraging dis·cour·age  
tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es
1. To deprive of confidence, hope, or spirit.

2. To hamper by discouraging; deter.

 new investment in coal mining industry as follows:

a. Legal and business certainty

The implementation of the regional autonomy law in 2001 has brought about various problems concerning confusion in authority between the center and the regional administrations. Based on the Law No. 22 in 1999 on regional administration, and government regulation (PP) No. 25 in 2000, regional administrations have the authority to operate natural resources in their respective areas and are responsible for the preservation of the environment in line with the law regulation. On the other hand the Law No. 11 in 1967 remains effective causing confusion to new investors as until now the new Law on Mining is not yet issued to accommodate the interest of the autonomous regions.

b. Overlapping and Conflicting Regulations

In 1999, a number of regulations and policies were issued hampering efforts to develop the mining sector such as the Law No. 41 Year 1999 on forestry banning mining operation in protected forest A protected forest is a specific term to denote forests with some amount of legal, and / or constitutional protection in certain countries, besides being a generic term to denote forests where the habitat and resident species are legally accorded protection.  areas. The law has hampered development of 150 KP/KK/PKP2B projects in protected forest areas. Autonomous regional areas have issued many coal KP licenses conflicting with the regulation issued by the central government.

c. Taxation Policy

PP No. 144 in 2000 changed the status of coal from goods exempted from tax into one imposed with tax causing difference in interpretations between PKP2B companies and the government.

The government has called on PT Kaltim Prima Coal, PT Arutmin and four other coal mining companies to settle their unpaid coal royalties from 2001-2005 worth Rp 3.91 trillion. The government is entitled en·ti·tle  
tr.v. en·ti·tled, en·ti·tling, en·ti·tles
1. To give a name or title to.

2. To furnish with a right or claim to something:
 to a 13.5% revenue share from the coal sales as a royalty payment. The coal miners have refused to pay the royalties on the grounds that the ministry of finance must reimburse re·im·burse  
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.

2. To pay back or compensate (another party) for money spent or losses incurred.
 the VAT VAT

See: Value-added tax


See value-added tax (VAT).
 they paid since the issuance of the government regulation no. 144 in 2000. The coal contractors argued that the so called first generation CoW, known as PKP2B, stipulates that they must be exempted from paying any other taxes. The first generation coal miners are also exempted from paying 5% coal export tax, which was introduced last year and therefore the government should also reimbursed the tax.

d. Regional Compensation and tax on heavy equipment.

The Law No. 34 in 2000 amending the Law No. 18 of 1997 on regional taxes and compensation, expanded tax objects in motor vehicles.. All motor vehicles that are used in all types of road are classified as heavy equipment.

e. Illegal Mining (PETI PETI People for the Ethical Treatment of Insects
PETI Post Eligibility Treatment of Income

Illegal mining has been rampant in the country. They mine coal in concession areas of coal mining companies causing big losses to the companies. The illegal miners not only steal coal, but they also cause damage to the environment in area under the responsibility of licensed coal mining companies.

Illegal mining often is large scale. PT Arutmin, in South Kalimantan, is subject to illegal miners who use a fleet of 200 trucks and 16 excavators. They transport their output using a road and a jetty built across environmentally sensitive coastal marshlands.

Illegal miners account for as much as 4 million of the 22 million tonnes of coal mined in South Kalimantan annually; this represents a loss of output worth US$ 92 million at current prices. Much of the province's illegal coal comes from the mine area PT Arutmin owns. Industry sources report an environment of intimidation and threats of violence. PT Arutmin has considered demanding the government to pay compensation for damage caused by the illegal miners.

Investment Cost in new coal mines

A coal mining venture in Central Kalimantan Central Kalimantan (Indonesian: Kalimantan Tengah often abbreviated to Kalteng) is a province of Indonesia, one of four in Kalimantan - the Indonesian part of the island of Borneo. Its provincial capital is Palangkaraya.

The province has a population of 1.
, with mine 100 kilometers from the first piling terminal in the Barito river and 200 kilometers from transshipment Transshipment

The passing goods from one ocean vessel to another.
 place. Explorations have been made and the mine is ready for exploitation over a period of 10 years with an annual production of 2 million tons. Around US$ 32 million are needed to develop the mine including US$ 25 million for investment and US$ 7 million for working capital.

Coal Trade

More than 70% of Coal Production Exported

Indonesia exports 70% of its coal output. Demand for coal grows with the soaring prices of crude oil. Coal is used especially to fuel power plants. In the past 7 years the country's coal exports have increased 12.2% annually--from 47 million tons in 1998 to 106 million tons in 2005.

Large producers such as Kaltim Prima Coal (KPC) generally exports most of their production. KPC exported 26.6 million tons of its total production of 27.6 million tons of coal in 2005. See the following table.

Indonesia exports coal mainly to Japan, Taiwan, South Korea Hong Kong, and India. Exports to Japan totaled 24 million tons in 2005. Exports to Japan is stable as it has not built new coal fired power plants in the past several years. Other Asian countries are still building more coal fired power plants.

Demand Aspects

Coal requirement in Indonesia to rise

Domestic consumption of coal averages only 40 million tons a year or 30% of the country's production. The largest consumer are coal fired power plants, accounting for 63% of the domestic consumption, followed by cement factories and pulp industry. See the following table.

Coal consumption in Indonesia is relatively small in comparison to its production. Coal accounts for only 35% of energy generated in the country as against oil energy of 41%. The composition is expected to change in favor of upon the side of; favorable to; for the advantage of.

See also: favor
 coal in the coming years with the government's program to economize e·con·o·mize  
v. e·con·o·mized, e·con·o·miz·ing, e·con·o·miz·es

1. To practice economy, as by avoiding waste or reducing expenditures.

 on oil.

The government has launch a program to use more coal instead of oil to fuel power plants. PLN is to build coal-fired power plants with a total capacity of 10,000 megawatts to be completed in 2010. An additional supply of around 26 million tons of coal, therefore, will be needed. Including consumption for the new plants, and coal fired power plants to be built by Independent Power Producers (IPP), the country's coal consumption in 2010 is estimated to total 91.9 million tons.

Currently coal consumption for the country's cement industry is around 5.5 million tons and the consumption is forecast to rise to 7.5 million tons n 2010. Coal is also expected to be used by growing number of other industries like textile industry and boilers.

The country will save up to 50% of fuel cost if oil is substituted with coal. Textile industry will need around 500,000 tons of coal a year of oil is to be substituted with coal for fuel. The consumption could rise to 1.2 million tons a year in 2010.

Suralaya coal-fired power plant is the bigest user of coal in Indonesia, followed by Paiton Energy. In cement industry, PT Indocement in Citeureup, West Java, is the bigest user, followed by PT Cement Gresik in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. . The following table shows the domestic coal user in 2003-2004.

Domestic market Obligation

With the rising prices of coal and the increase in demand consumers begin to fear of scarcity Scarcity

The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
 of supply in the future especially as coal producers tend to exports their production.

Under the working contract, the state has only 13.5% split of coal output produced by contractors. They are not required to give priority to domestic consumption. The problem faced by the country in the case of gas is feared to repeat itself in coal.

Gas is exported on long term contracts with buyers abroad while consumers in the country are facing scarcity in supply.

The Association of Coal Mining (APBI APBI Accelerated Partial Breast Irradiation
APBI Alliance Pet Business International
APBI Advanced Planning Briefings for Industry
APBI Advanced Planning for Business and Industry
), therefore, has proposed a formula requiring coal producers to observe domestic market obligation/DMO, under which they will export coal only when domestic consumption has been fulfilled ful·fill also ful·fil  
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.

. APBI Executive Director Soedjoko Tirtosoekotjo said DMO DMO Debt Management Office (Bank of England)
DMO Destination Marketing Organization
DMO Defence Materiel Organisation (Australia)
DMO Dental Maintenance Organization
DMO Distributed Mission Operations
 could reach 40% of the country's total production.

The government is still studying the DMO formula to be adopted. Call for the ruling of DMO is stronger after PLN is charged with the task of building coal power plants with a total capacity of 10,000 MW until 2010

Marketing Aspect

Contract sales dominate coal trade

Contract sales dominate coal trade. Only a small part of coal production is sold on spot market. PT Arutmin sells 90% of its coal production on l contract and KPC sells 80% of its production on contract and Bukit Asam sells its entire production on long term contract to PLN.

Thermal coal dominates coal production in Indonesia suitable for coal fired power plants. Supply to spot market comes mainly from small producers or illegal miners. Spot market is estimated to reach up to 8 million tons a year.

Coal prices up again

The price of coal of 6,700 kcal /kg peaked in 2004 and early 2005 at US$ 53.47 per ton, according to Barlow bar·low  
An inexpensive, one- or two-bladed pocketknife.

[After Barlow, the family name of its makers, two brothers in Sheffield, England.]
 Jonker Spot Price. The highest price was US$ 62.9 per ton late 2004 triggered by panic buying following the surge in oil prices. Toward the end of 2005, the coal price fell with large stocks.

The prices of coal in Indonesia vary by types and calorific value. Early 2006, the export price on FOB averaged US$ 40.69 per ton.

Indonesian Coal Price Index

Ironically, Indonesia, the second largest exporter of coal in the world, has no own price reference. The country uses the price references of Barlow Jonker (Coalfax), Argus (coal daily), etc..

APBI and coal business players and Argus Media Limited then initiated the formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating.

American Law Institute Formulation
 of Index Harga Batubara Indonesia (Indonesian Coal Price Index/ICI) set by a panel of 23 agencies including producers, consumers, and supporting industries.

The price index is published by PT Coalindo Energy, which is owned by coal business players.

The benchmark prices are for three grades--Coalindo ICI-1 with a calorific value of 6,500 kcal/kg, Coalindo ICI-2 5800 kcal/kg and Coalindo ICI-3 500 kcal/kg. Coalindo ICI-3 could become a reference for coal of low calorific value used by PLN.

The prices of Indonesia coal as published in June, 2006 were around US$ 51.66 --US$ 48.94 per ton of ICI-1. Officially the price of Coalindo ICI (language) ICI - An extensible, interpretated language by Tim Long with syntax similar to C. ICI adds high-level garbage-collected associative data structures, exception handling, sets, regular expressions, and dynamic arrays.  will be published in July, 2006.

Prospects of coal as a source of energy for Indonesia

The government in a blue print for energy management said that coal will account for 32.7% of energy supply in the country in 2025. Step toward realization of the target has been made with the construction of PLTUs to replace oil fired power plants.

If the oil prices are still higher than US$ 50 a barrel, coal will have good prospects as an alternative source of energy.

Projection of domestic requirement

Earlier the government predicted that the country will need 58.5 million tons of coal in 2010, up to 95.6 million tons in 2020. The requirement is expected to be much higher with the rising oil prices.

The coal requirement to feed power plants alone is expected to reach 100 million in 2010 not including around 7.5 million tons for cement industry, and 1.2 million tons for other industries such as textile industry.

The government has said to use low rank coal to fuel power plants such as lignite of which the country has large reserves.

If the country is to maintain its annual exports of 125 million tons, the country has to produce up to 225 million tons of coal in 201, up from around 150 million tons at present. In order to reach the goal, the country will need to invest US$ 750 million--US$ 1 billion in this area.

Industrial Risks

There was little interest in coal as fuel because of a number of factors, It causes much pollution than oil fuel and it is less efficient to use coal that oil, but now with the oil prices soaring, coal is high in demand. It has suddenly become an important alternative source of energy.

Coal mining, even the open pit mining in Indonesia, has been accused of causing extensive damage to the environment as it requires wide operation areas.

The risks that have to be faced by coal mining companies include:

--Failure in finding adequate coal reserve for commercial exploitation.

--Oil price fluctuation Fluctuation

A price or interest rate change.
 that will determine the prices of coal in the world market.

--International pressures necessitating additional cost to comply with the rule of preserving the environment.

--Coal mining is a long term venture therefore, there are risks of changes in the government policy that could cause additional burden for the investors such as in taxes and overlapping concession licenses.

--Too many levies both legal and illegal, and inconsistent and conflicting regional regulations hampering investment.

Conclusions and Recommendations


** Coal becomes a cheap alternative source of energy after the soaring oil prices.

** Indonesia has potential reserves of coal found in various areas notably in South Sumatra, East Kalimantan, and South Kalimantan.

** Indonesia's coal production rose sharply in the 2000-2005 period, up by 14.3% annually on the average from 77 million tons to 150 million tons.

** Around 90% of the country's coal production comes from East Kalimantan and South Kalimantan.

** Around 80% of the country's coal production is dominated by six large producers namely Borneo Lumbung Energi (which owns KPC and Arutmin), Adaro, Kideco, Banpu Group, Berau and PT BA.

** Indonesia is the world's second largest exporter of coal after Australia.

** Indonesia has comparative advantages over other coal producing countries as it is geographically closer to consumers and its coal mining cost is cheaper especially in the production of thermal coal to fuel power plants.

** Domestic consumption of coal is relatively small. With oil much more expensive, the government has launched a policy to use more coal to fuel power plants by planning building more coal fired power plants with a total capacity of 20,000 megawatts. The program will certainly push up demand for coal in the country in the next three years.

** It is estimated that in 2010, the country will need 100 million tons of coal up from 40 million tons in 2005. In order to meet the requirement and export commitments, the country needs to increase production to 225 million tons in 2010, up from around 155 million tons at present.

** The large export commitments necessitate ne·ces·si·tate  
tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates
1. To make necessary or unavoidable.

2. To require or compel.
 exploitation of new deposits to meet domestic requirement. However, until now there is little interest shown by new investors in coal mining because of various factors including the government policies not seen as favorable fa·vor·a·ble  
1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

 by investors.

** Around US$ 1 billion are needed in investment to finance development of new mines to be able to produce 225 million tons needed in 2010.


** The government program to make coal as the main source of energy in the country requires supports in the form of policies that will encourage investment in the coal mining sector by removing all bottlenecks such as inconsistent taxation policy, and overlapping in mining concessions and conflicting regulations and by taking firm measure to stop illegal mining.

** The government has to be more serious in securing coal supply in the country and at the same time protecting the interest of coal mining companies already have contract buyers abroad by formulating a fair domestic market obligation.

** Coal is non renewable natural resource, and coal mining is a long term venture causing potential damage to the environment. The government, therefore, must have long term vision in exploiting the natural wealth and must not look for short term profit.

** Construction of adequate and better infrastructure will also contribute to increasing coal production such as transport facilities, including coal terminals, roads and railways linking mines and terminals.

** Coal depots to serve as stockpiling stock·pile  
A supply stored for future use, usually carefully accrued and maintained.

tr.v. stock·piled, stock·pil·ing, stock·piles
To accumulate and maintain a supply of for future use.
 facility are also needed in places near consumers to better guarantee supply without consumers having to keep large stocks.

** Coal mining ventures need large investment, therefore, banks have to be involved in drafting a policy. Until now most coal mining ventures have been financed by foreign banks
Table - 1
World's coal trade

Years   Steam    Coking   Total Trade

1995    297 Mt   196 Mt       494 Mt
2000    421 Mt   188 Mt       609 Mt
2004    541 Mt   214 Mt       755 Mt

Sources: IEA

Table - 2
World's largest coal exporting countries, 2004

Exporting countries   Total    Steam   Coking

Australia            219 Mt   107 Mt   112 Mt
Indonesia            107 Mt    90 Mt    17 Mt
China                 86 Mt    80 Mt     6 Mt
South Africa          67 Mt    64 Mt     3 Mt
Russia                65 Mt    51 Mt    14 Mt
Colombia              52 Mt    51 Mt     1 Mt
USA                   43 Mt    19 Mt    24 Mt
Canada                27 Mt     1 Mt    26 Mt
Kazakhstan            22 Mt    22 Mt     0 Mt

Sources: BP, IEA, IISI, SSY

Table - 3
Main producers of coal in the world 2004

Countries         (million tons)

China                  1,956 Mt
USA                      933 Mt
India                    373 Mt
Australia                285 Mt
South Africa             238 Mt
Russia                   210 Mt
Indonesia                129 Mt
Poland                   100 Mt
Kazakhstan                83 Mt
Ukraine                   62 Mt
Other countries          260 Mt
Total World            4,629 Mt

Sources: BP, IEA, IISI, SSY

Table - 4
Proven reserves of coal in the world,  2005

(Million tons)

                             Anthracite      Sub-
                                and       bituminous
          Country            bituminous   and Lignite    Total

- USA                           111,338      135,305    246,643
Total North America             115,669      138,763    254,432
Total S. & Cent. America          7,701       12,192     19,893
-Russian Federation              49,088      107,922    157,010
Total Europe & Eurasia          112,256      174,839    287,095
Total Africa & Middle East       50,581          174     50,755

- Australia                      38,600       39,900     78,500
- China                          62,200       52,300    114,500
- India                          90,085        2,360     92,445
- Indonesia                         740        4,228      4,968
- Japan                             359           -         359
- North Korea                       300          300        600
- Pakistan                            -        3,050      3,050
- Thailand                            -        1,354      1,354
- Other Asia Pacific                280          833      1,113
Total Asia Pacific              192,564      104,325    296,889

TOTAL WORLD                     478,771      430,293    909,064

                             Share of    R/P
          Country              total    ratio

- USA                          27.1%     240
Total North America            28.0%     231
Total S. & Cent. America        2.2%     269
-Russian Federation            17.3%      *
Total Europe & Eurasia         31.6%     241
Total Africa & Middle East      5.6%     200

- Australia                     8.6%     213
- China                        12.6%      52
- India                        10.2%     217
- Indonesia                     0.5%      37
- Japan                           *      323
- North Korea                   0.1%      20
- Pakistan                      0.3%      *
- Thailand                      0.1%      64
- Other Asia Pacific              *
Total Asia Pacific             32.7%      92

TOTAL WORLD                   100.0%     155

Source of reserves data: Survey of Energy Resources,
World Energy Council

Reserves/Production (R/P) ratio--If the reserves remaining at the
end of the year are divided by the production in that year, the
result is the length of time that those remaining reserves would
last if production were to continue at that level.

Table - 5
Types and characteristics of coal

of coal          Characteristics                  Uses

Anthracite   - High carbon content        - Iron ore smelting
             - Sulphur 1.0 %              - Basic material
             - Calorie 6,900 kcal/kg        without seam
                                          - Active carbon

Bituminous   - Volatile matter 15 - 23%   - Cement factory
             - Sulphur 1.0%               - General industry
             - Calorie 5.900 kcal/kg

Sub          - Ash < 8%                   - Power plant
Bituminous   - Sulphur < 0.6%             - General industry
             - Calorie > 4.900 kcal/kg

Lignite      - Ash < 6%                   - Power plant
             - Sulphur < 0.5%             - General industry
             - Calorie > 4.000 kcal/kg

 Types        deposits         Mining
of coal         (%)            methods

Anthracite      0.36      Deep mining

Bituminous     14.38      Open pit mining

Bituminous     26.63      Open pit mining

Lignite        56.83      Open it mining

Source: Coal/General mining directorate general

Table - 6
Location of coal resources  Indonesia  by locations and volume

(million tons)

                         measured    indicated    probable

Island of Java
Banten                       0.00        0.00        13.75
Central Java                 0.00        0.00         0.82
East Java                    0.00        0.00         0.08

Island of Sumatra
Nanggroe Aceh
Darussalam                  90.40       13.40       346.35
North Sumatra               19.97        0.00         7.00
Riau                       336.62        0.00     1,720.60
West Sumatra               181.24       42.72       475.94
Bengkulu                    62.18        7.95       113.09
Jambi                       94.22       36.32     1,462.03
South Sumatra            1,970.75   19,946.48       323.17
Lampung                      0.00        0.00       106.95

Island of. Kalimantan
West Kalimantan              1.48        1.32       482.60
Central Kalimantan         194.02        5.08     1,200.11
South Kalimantan         3,109.21      155.08     5,410.27
East Kalimantan          6,385.13      325.21    12,401.11

Other islands
South Sulawesi              21.20        0.00       110.81
Central Sulawesi             0.00        0.00         1.98
Papua                        0.00        0.00       138.30

TOTAL                   12,466.42   20,533.56    24,314.96

Province                                 Total    reserves
                        Hypothetic      Reserve

Island of Java
Banten                        0.00       13.75       0.00
Central Java                  0.00        0.82       0.00
East Java                     0.00        0.08       0.00

Island of Sumatra
Nanggroe Aceh
Darussalam                    0.00      450.15       0.00
North Sumatra                 0.00       26.97       0.00
Riau                          0.00    2,057.22      15.15
West Sumatra                 19.19      719.09      36.07
Bengkulu                     15.15      198.37      21.12
Jambi                         0.00    1,592.57       9.00
South Sumatra                 0.00   22,240.40   2,653.98
Lampung                       0.00      106.95       0.00

Island of. Kalimantan
West Kalimantan              42.12      527.52       0.00
Central Kalimantan            0.00    1,399.21      48.59
South Kalimantan              0.00    8,674.56   1,787.32
East Kalimantan             456.34   19,567.79   2,410.33

Other islands
South Sulawesi                0.00      132.01       0.06
Central Sulawesi              0.00        1.98       0.00
Papua                         0.00      138.30       0.00

TOTAL                       532.80   57,847.74   6,981.62

Source: Coal and Mineral Statistics of GSM directorate
general 1 Jam. 2004

Table - 7
Number of coal mining companies and PKP2B contractors

                  Year of      Number of
Contractors       signing      companies   Active   Producing

BUMN                  -
(PT BA)                              1         1          1

Generation I     1981 - 1993        10         9          9

Generation II    1993 - 1996        18        14          8

PKP2B            1996 --
Generation III   June 2001         112        61         10

KP and KUD            -           >320       n.a

Contractors      Cancelled

(PT BA)             -

Generation I        1

Generation II       4

Generation III     61

KP and KUD

Source: Data Consult

Table - 8
Mining companies having coal reserves more than 1 billion tons

Company                   Status           Regency

PT BA                     State Owned

                          Generation I     Paringin,
Adaro Indonesia, PT                        Tabalong,

                          Generation I     Kotabaru,
Arutrnin Indonesia, PT                     Tanah Laut

Berau Coal, PT            Generation I     Berau

Indominco Mandiri, PT     Generation I     East Kutai,

Kaltim Prima Coal, PT     Generation I     East Kutai

Kideco Jaya Agung, PT     Generation I     Pasir

Pendopo Energi Coal, PT   Generation III   Muara Enim &

Yamabhumi Palaka, PT      Generation III   Sintang

Company                   Province             tons)

PT BA                     South Sumatra      6.559.00

Adaro Indonesia, PT       South Kalimantan   1,967.42

Arutrnin Indonesia, PT    South Kalimantan   2,513.90

Berau Coal, PT            East Kalimantan    2,745.76

Indominco Mandiri, PT     East Kalimantan    1,249.70

Kaltim Prima Coal, PT     East Kalimantan    3,472.00

Kideco Jaya Agung, PT     East Kalimantan    1,050.40

Pendopo Energi Coal, PT   South Sumatra      1,525.83

Yamabhumi Palaka, PT      West kalimantan    4,212.00

Company                   Description
PT BA                     Producing

Adaro Indonesia, PT       Producing

Arutrnin Indonesia, PT    Producing

Berau Coal, PT            Producing

Indominco Mandiri, PT     Producing

Kaltim Prima Coal, PT     Producing

Kideco Jaya Agung, PT     Producing

Pendopo Energi Coal, PT   Exploration

Yamabhumi Palaka, PT      Exploration/
                          Feasibility Study

Source: GSM directorate general, Data Consult

Table - 9
Coal mining subsidiaries of the Banpu Group

Name of company           Regency     Province       Area

Indominco Mandiri, PT   East Kutai    Kalimantan   25,121.00

Trubaindo Coal                        East
Mining, PT              West Kutai    Kalimantan   23,650.00

Jorong Barutama         Tanah Laut    South
Greston, PT                           Kalimantan    7,341.00

Kitadin, PT             Bontang       East
Nusantara Thai
Coal, PT                Bungo Tebo    Jambi         2,832.00

Barasentosa             Musi Rawas,   South        24,385.00
Lestari, PT             Banyuasin     Sumatra

Name of company          Resource   (mil. T.)     Status

Indominco Mandiri, PT    1,249.70      45       Producing

Trubaindo Coal
Mining, PT                  61.00      52       Producing

Jorong Barutama
Greston, PT                 58.81      36       Producing

Kitadin, PT                 71.70      28       Producing

Nusantara Thai
Coal, PT                    29.92      -        FS

Lestari, PT                120.00      -        FS

Source: Data Consult

Table - 10
The development of Coal production, 2000 - 2005

          State co.    PKP2B     KP and     Total   Growth
Year       (PTBA)     (KK co.)    KUD                (%)

2000       10,746      61,707     4,587    77,040
2001        7,212      76,532     5,796    92,540   20.1%
2002        9,482      87,078     6,811   103,372   11.7%
2003       10,026      94,866     7,893   112,785    9.1%
2004        8,707     113,171     7,286   129,164   14.5%
2005 *)     8,607     132,545     8,515   149,667   15.9%
2006 **)    2,921      41,854       590    45,365     -

Average growth                                      14.3%

Note: *) provisional figure

**) Up to April 2006

Source: GSM directorate general, Data Consult

Table - 11
Coal production by provinces, 2003 - 2005

                              2003          2004          2005
Area                       (000' tons)   (000' tons)   (000' tons)

West Sumatra

Allied Indo Coal, PT            51.95        185.04             -
Bukit Asam                                                8,559.12
Bukit Asam, PT
  (Ombilin Mine)                 9.76         69.33          47.51
Karbindo                        55.43            -           34.10
  Abesyapradhi, PT
Sub-total                      117.10        254.40       8,641.70

South Sumatra

Bukit Asam, PT (Tg.
  Enim Mine)
Antrachite Coal                  3.95            -              -
Steam Coal                  10,013.12      8,637.84             -
Sub-total                   10,017.07      8,637.84           0.00


Nusa Riau Kencana
  Coal, PT                         -          93.55         388.50
Riau Bara Harum, PT                -             -          167.03
Sub-total                        0.00         93.55         555.53


Bukit Bara Utama, PT           101.92         95.92          88.46
Bukit Sunur, PT                113.82        154.97          91.34
Danau Mashitam, PT              87.65        177.94          39.25
Kusuma Raya Utama, PT           30.87            -              -
Sub-total                      334.26        428.83         219.06

South Kalimantan

Adaro Indonesia, PT         22,523.25     24,330.60      26,686.20
Alhasanie, PT                      -             -          117.00
Antang Gunung Meratus          507.02      1,130.21       1,028.51
Anugerah Bara Kaltim/
  Shawindo, PT               2,474.90      3,413.33       3,394.76
Arutmin Indonesia, PT       13,614.60     15,019.10      16,756.70
Bahari Cakrawala
  Sebuku, PT                 1,963.72      2,531.06       2,999.99
Balangan Putera, CV                -          69.23              -
Bara Pinang
  Corporation, CV                  -         221.70              -
Baramarta, PD                  719.23      1,049.30       1.285,55
  Suksessarana, PT              39.22         72.97          27,33
Bumi Dharma Kencana, PT            -         271.31              -
Cenco International, PT            -        180,336              -
Jorong Barutama
  Greston, PT                2,891.45      2,801.04       3,028.93
Kalimantan Energi
  Utama, PT                        -         680.76              -
Kalimantan Energi
  Lestari, PT                      -             -          600.80
Kalimantan Energi
  Lestari, PT                      -             -          600,80
Markulin, KUD                      -        686,16               -
Nusantara, KUD                     -        182,10               -
Satui Bara Tama, PT                -        441,50               -
Sumber Kurnia Buana, PT        932.45       756,55          870,18
Surya Kencana Jorong
  Mandiri, PT                      -         26,61               -
Surya Sakti Darma
  Kencana, PT                      -        328,40               -
Tani Jaya Murni, KUD               -         98,99               -
Tanjung Alam Jaya, PT          450.43       249,86          750,81
Trubindo Coal
  Mining, PT                       -             -        1.610,39
Sub-total                   46,116.29    54.540,98      5 9.157,18

East Kalimantan

Baradinamika Muda
  Sukses, PT                   328.30            -           63,68
Berau Coal, PT               7,359.54     9.103,12        9.197,37
Bina Mitra
  Sumberarta, PT                   -             -          168,73
Bukit Baiduri
  Enterprise, PT             2,416.92      1.430.40       1,721.79
Fajar Bumi Sakti, PT            49.54        152.91         327.85
Gunung Bayan
  Pratamacoal, PT            3,325.93      3,359.57       4,329.94
Indominco Mandiri, PT        6,327.10      7,103.26       7,448.84
Kaltim Prima Coal, PT       16,203.46     21,279.76      27,641.33
Kadya Caraka Mulia, PT             -             -          167.41
Kartika Selabumi
  Mining, PT                   301.63        736.11       1,035.13
Karya Murni, KOP                   -             -           12.57
Kideco Jaya Agung, PT       14,055.94     16,926.70      18,125.04
Kidatin Corporation, PT      2,291.25      1,767.77         327.11
Kimco Armindo                      -             -          963.00
Lanna Harita
  Indonesia, PT              1,234.94      1,699.70       1,886.55
Multi Harapan Utama, PT      1,620.40      1,521.03         896.60
Mahakarya Ekaguna, PT              -             -          185.55
Mahakam Sumber Jaya, PT            -             -        1,694.36
Mandiri Inti Perkasa, PT           -         602.25       1,081.73
Manunggal Inti
  Arthamas, PT                     -             -          308.42
Marunda Graha
  Mineral, PT                      -         457.82         824.00
Multi Prima Energi, PT             -             -          259.07
Tanito Harum, PT             2,178.58      2,256.02       2,402.77
Tri Bhakti Sarimas, PT             -             -           23.88
Sub-total                   57,693.48     68,396.46      81,092.76
Total                      114,278.20    132,352.02     149,666.23

Source: GSM directorate general, Data Consult

Table - 12
Largest coal producers and production

                        Production 2005    Share
Coal mining company     (million tons)      (%)

Borneo Lumbung Energi            44.3      29.6%
Adaro                            26.7      17.8%
Kideco                           18.1      12.1%
Banpu Group                      12.4       8.3%
Berau                             9.2       6.1%
PT BA                             8.6       5.7%
Sub Total                       119.3      79.7%
Other producers                  30.4      20.3%
Total                           149.7     100.0%

Source: Data Consult

Table - 13
Indonesia's coal production, 2003 - 2005 *)

(000 tons)

      Coal mining companies                 2003      2004

      State comp.
      Bukit Asam, PT                       10,027     8,707
1.    Adaro Indonesia, PT                  22,523    24,331
2.    Allied Indo Coal, PT                     52       185
3.    Antang Gunung Meratus, PT               507     1,130
4.    Arutmin Indonesia, PT                13,615    15,019
5.    Bahari Cakrawala Sebuku, PT           1,964     2,531
6.    Baramarta, PD                           719     1,049
7.    Baramulti Suksessarana, PT               45        73
8.    Berau Coal, PT                        7,360     9,103
9.    Gunung Bayan Pratamacoal, PT          3,326     3,360
10.   Indominco Mandiri, PT                 6,327     7,103
11.   Jorong Barutama Greston, PT           2,891     2,801
12.   Kadya Caraka Mulia, PT
13.   Kalimantan Energi Lestari, PT
14.   Kaltim Prima Coal, PT                14,763    21,280
15.   Kartika Selabumi Mining, PT             302       736
16.   Kideco Jaya Agung, PT                14,056    16,927
17.   Lanna Harita Indonesia, PT            1,235     1,700
18.   Mahakam Source Jaya, PT
19.   Mandiri Intiperkasa, PT                           602
20.   Marunda Graha Mineral, PT                         458
21.   Multi Harapan Utama, PT               1,620     1,521
22.   Riau Bara Harum, PT
23.   Source Kurnia Buana, PT                 932       757
24.   Tanito Harum, PT                      2,179     2,256
25.   Tanjung Alam Jaya, PT                   450       250
26    Trubaindo Coal Mining, PT

      Sub Total Contractors                94,866   113,171
      KP private
1.    Alhasanie, PT
2.    Anugerah Bara Kaltim, PT              2,475     3,413
      Baradinamika Muda
3.    Suksessarana, PT                        328
4.    Bina Mitra Sourcearta, PT
5.    Bukit Baiduri Energi, PT              2,417     1,430
6.    Bukit Bara Utama, PT                    102        96
7.    Bukit Sunur, PT                         114       155
8.    Danau Mashitam, PT                       88       178
9.    Fajar Bumi Sakti, PT                     50       153
10.   Karbindo Abesyapradhi, PT                29
11.   Karya Murni, KOP
12.   Kimco Armindo, PT
13.   Kitadin Corporation - Embalut, PT     2,291     1,768
14.   Mahakarya Ekaguna, PT
15.   Manunggal Inti Arthamas, PT
16.   Multi Prima Energi, PT
17.   Nusa Riau Kencana Coal, PT                         94
18.   Tri Bhakti Sarimas, PT

      Sub Total KP Private and
      Cooperatives                          7,893     7,287
      Total Indonesia                     112,787   129,165

                                       (000 tons)

      Coal mining companies               2005

      State comp.
      Bukit Asam, PT                        8,607
1.    Adaro Indonesia, PT                  26,686
2.    Allied Indo Coal, PT
3.    Antang Gunung Meratus, PT             1,029
4.    Arutmin Indonesia, PT                16,757
5.    Bahari Cakrawala Sebuku, PT           3,000
6.    Baramarta, PD                         1,286
7.    Baramulti Suksessarana, PT               27
8.    Berau Coal, PT                        9,197
9.    Gunung Bayan Pratamacoal, PT          4,330
10.   Indominco Mandiri, PT                 7,449
11.   Jorong Barutama Greston, PT           3,029
12.   Kadya Caraka Mulia, PT                  167
13.   Kalimantan Energi Lestari, PT           601
14.   Kaltim Prima Coal, PT                27,641
15.   Kartika Selabumi Mining, PT           1,035
16.   Kideco Jaya Agung, PT                18,125
17.   Lanna Harita Indonesia, PT            1,887
18.   Mahakam Source Jaya, PT               1,694
19.   Mandiri Intiperkasa, PT               1,082
20.   Marunda Graha Mineral, PT               824
21.   Multi Harapan Utama, PT                 897
22.   Riau Bara Harum, PT                     167
23.   Source Kurnia Buana, PT                 870
24.   Tanito Harum, PT                      2,403
25.   Tanjung Alam Jaya, PT                   751
26.   Trubaindo Coal Mining, PT             1,610

      Sub Total Contractors               132,544
      KP private
1.    Alhasanie, PT                           117
2.    Anugerah Bara Kaltim, PT              3,395
      Baradinamika Muda
3.    Suksessarana, PT                         64
4.    Bina Mitra Sourcearta, PT               169
5.    Bukit Baiduri Energi, PT              1,722
6.    Bukit Bara Utama, PT                     88
7.    Bukit Sunur, PT                          91
8.    Danau Mashitam, PT                       39
9.    Fajar Bumi Sakti, PT                    328
10.   Karbindo Abesyapradhi, PT                34
11.   Karya Murni, KOP                         13
12.   Kimco Armindo, PT                       963
13.   Kitadin Corporation - Embalut, PT       327
14.   Mahakarya Ekaguna, PT                   186
15.   Manunggal Inti Arthamas, PT             308
16.   Multi Prima Energi, PT                  259
17.   Nusa Riau Kencana Coal, PT              388
18.   Tri Bhakti Sarimas, PT                   24

      Sub Total KP Private and
      Cooperatives                          8,515
      Total Indonesia                     149,665

Source: GSM directorate general, Data Consult

Table - 14
Coal Terminals and Their Capacities

Coal Terminal                               Vessel
(operator)                                  (DWT)


Kertapati           Palembangm,        8,000(Barge)
Terminal (PTBA),    South Sumatra

Pulau Bai, South    South Sumatra            40,000
Sumatra (GOI)

Tarahan Coal        Lampung                  80,000
Terminal (PTBA),

Teluk Bayur         Padang, West
Terminal (PTBA),    Sumatera                 40,000


Tanjung Bara Coal   Sangata, East           220,000
Terminal (KPC),     Kalimantan

Tanah Merah         East Kalimantan          60,000

North Pulau Laut,   South Kalimantan        150,000

Balikpapan Coal     Balikpapan, East         60,000
Terminal (BCT),     Kalimantan
PT Dermaga
Perkasa Pratama

Tanjung Redeb       East Kalimantan           5,000
(Berau Coal)

Beloro Terminal     East Kalimantan    8,000(barge)
(Multi Harapan

Loa Tebu,           East Kalimantan           8,000
(Tanito Harum)

Tj. Pemancingan,    South Kalimantan         60,000

Sembilang,          South Kalimantan          7,500

Air Tawar,          South Kalimantan          7,500

Satui, (Arutmin)    South Kalimantan          5,000

Banjarmasin,        South Kalimantan          5,000

Kelanis, (Adaro)    South Kalimantan          8,000

Indonesian Bulk     South Kalimantan        200,000
Terminal (IBT),
South Pulau
Laut, (PT.
Terminal Batubara

Bengalon, (KPC)     East Kalimantan         Panamax

P. Sebuku,
(Bahari             South Kalimantan            N/A

Bontang,            East Kalimantan          10,000

Binugan, (Berau     East Kalimantan           5,000

East Kalimantan     East Kalimantan    Barge loaded


Terminal Batubara                             6,000
Indah (TBI),
West Java

Coal Terminal       Throughput   Operational
(operator)          (1000 MT)    start


Kertapati                2,500           1962
Terminal (PTBA),

Pulau Bai, South         2,000
Sumatra (GOI)                            1985

Tarahan Coal            12,000      1989 1998
Terminal (PTBA),                    expansion

Teluk Bayur
Terminal (PTBA),         2,500           1991


Tanjung Bara Coal        5,000           1991
Terminal (KPC),

Tanah Merah              2,600           1992

North Pulau Laut,        5,000           1994

Balikpapan Coal          5,000           1995
Terminal (BCT),
PT Dermaga
Perkasa Pratama

Tanjung Redeb              750
(Berau Coal)

Beloro Terminal          1,350           1988
(Multi Harapan

Loa Tebu,                6,300
(Tanito Harum)

Tj. Pemancingan,         5,000

Sembilang,               1,000

Air Tawar,                1,80

Satui, (Arutmin)         1,500

Banjarmasin,                -

Kelanis, (Adaro)         1,700

Indonesian Bulk                          1997
Terminal (IBT),
South Pulau
Laut, (PT.
Terminal Batubara

Bengalon, (KPC)            N/A           N/A

P. Sebuku,
Cakrawala                  N/A           N/A

Bontang,                   N/A
(Indominco                               N/A

Binugan, (Berau        150,000           2000

East Kalimantan            N/A           N/A


Terminal Batubara       50,000           1990
Indah (TBI),
West Java

Sources: DPMB, US-Embassy, Data Consult

Table - 15
Coal mining projects handled by PT Pamapersada

                          Start-up              Volume of
Mining projects              year             work a year

PT Adaro Indonesia         In 1991         16 mil.- 17 mil.
                                              tons of coal
PT Kaltim Prima Coal       In 2001                 1.8 mil.
                                              tons of coal
PT Bhumi Rantau Energi     In 2002         3 mil.. - 4 mil.
                                              tons of coal
PT Dasa Eka Jasatama/      In 2002                 1.5 mil
  TNB Malaysia                                tons of coal
PT Indominco Mandiri       In 1996    6.5 mil tons of coal
PT Multi Harapan Utama     In 1998    1.8 mil tons of coal
PT Bukit Asam              In 1990   2.5 mil. tons of coal
PT Jembayan Muarabara      In 2004   2.5 mil. tons of coal
PT Anugerah Bara Kaltim    In 2006    1.8 mil tons of coal
PT Kideco Jaya Agung       In 2003        40 million m3 of

Source: PT PAMA, Data Consult

Table - 16
Projects handled by  PT BUMA

Coal mining projects                      Volume of works

PT. Berau Coal
       Binungan Coal Mining     2.1 million tons of coal a year
       Lati Coal Mining         6.5 million tons of coal a year
    Suaran Coal Hauling         3.5 million tons of coal a year
PT. Adaro Indonesia             4.5 million tons of coal a year
PT. Baduri Enterprises          1.5 million tons of coal a year
PT. Lanna Harita Indonesia
             LHI                1.6 million tons of coal a year
            Citra               1 million tons of coal a year
PT. Marunda Graha Mineral       1.6 million tons of coal a year
PT. Bahari Cakrawala Sebuku     3.6 million tons of ore a year
PT. Kideco Jaya Agung           4 million tons of coal a year
PT. Trubaindo Coal Mining       1.7 million tons of coal a year
PT. Sebuku Iron Lateritic Ore   1.5 million tons of ore a year
PT. Indomuro Kencana            Plant Hire

Source: BUMA, Data Consult

Table - 17
Coal mining cost in  Kalimantan

                            Range of
Types of cost unit           costs

Removal of overburden      US$ 1.1-1.5      US$/bcm

Coal getting             US$ 0.7 - 1.4      US$/ton

Transport of coal       US$ 0.02- 0.25   US$/km/ton
from location to
stockpile in
crushing plant

Coal processing in       US$ 0.4 - 1.5      US$/ton
crushing plant

Reclamation                     US$ 0.      US$/ton

Source: DPMB, IEEJ 2001

Table - 18
Targets for contributions of each  source of energy
to energy consumption in Indonesia,  2003 - 2025

Sources of primary  Contributions to energy
energy              consumption

                       2003       2005

Oil                      54.4%      26.2%
Natural gas              26.5%      30.6%
Coal                     14.1%      32.7%
PLTA (hydropower)         3.4%       2.4%
Geothermal                1.4%       3.8%
Other                     0.2%       4.4%

Source: Indonesian Blueprint of Energy

Table - 19
Indonesia's  Coal exports, 1998 - 2005

Year   (000 tons)   Growth

1998       47,626
1999       55,301    16.1%
2000       58,460     5.7%
2001       65,281    11.7%
2002       73,125    12.0%
2003       84,017    14.9%
2004       93,541    11.3%
2005      106,437    13.8%

Source: Coal Directorate, Data Consult

Table - 20
Coal exports by major producers, 2005


Name of company            Exports        Production

PTBA                     2,492,201.00    8,606,635.00
Adaro Indonesia, PT     17,317,389.00   26,686,197.00
Arutmin Indonesia       12,516,891.00   16,756,700.00
Bahari Cakrawala
  Sebuku, PT             2,148,630.00    2,999,997.00
Baramarta, PD               95,176.73    1,285,553.94
Berau Coal, PT           5,762,556.00    9,197,371.00
Gunung Bayan
  Pratamacoal, PT        1,324,250.90    4,329,940.00
Indominco Mandiri, PT    8,901,843.00    7,448,845.00
Jorong Barutama
  Greston, PT            1,915,957.02    3,028,935.00
Kaltim Prima Coal, PT   26,622,409.00   27,641,329.00
Kideco Jaya Agung, PT   11,831,112.00   18,125,043.00
Lanna Harita
  Indonesia, PT          1,732,691.00    1,886,550.24

Source: GSM directorate general, Data Consult

Table - 21
Exports by countries of destination,  2005

Destinations                     Total

BRAZIL                          146,126.00
CHILE                           887,482.72
CHINA                         1,227,064.80
CROATIA                          65,403.00
FRANCE                          349,678.00
HONG KONG                     8,969,582.58
INDIA                         8,748,293.20
IRELAND                         483,806.00
ITALY                         2,780,453.83
JAPAN                        24,237,427.00
KOREA, REPUBLIC OF            9,963,869.00
MALAYSIA                      4,028,723.80
NETHERLANDS                   1,075,783.00
NEW ZEALAND                     963,377.00
PAKISTAN                        251,237.00
PHILIPPINES                   2,654,936.29
SINGAPORE                     1,279,758.84
SLOVENIA                        405,331.00
SPAIN                         3,652,727.00
SWITZERLAND                   4,287,424.79
TAIWAN, PROVINCE OF CHINA    14,524,210.00
THAILAND                      4,255,737.02
UNITED KINGDOM                1,771,706.00
UNITED STATES                 1,930,710.00
OTHERS                        7,496,893.14

TOTAL                       106,437,741.02

Source: Coal Directorate, Data Consult

Table - 22
Coal consumption by sectors

Sectors                    2003      %      2004      %

Coal Fired Power Plant   22,995    75.0%   22,882    63.4%
Cement Industry           4,773    15.6%    5,549    15.4%
Metallurgy                  202     0.7%      119     0.3%
Pulp Industry             1,704     5.6%    1,161     3.2%
Briquette                    25     0.1%       18     0.0%
Others                      957     3.1%    6,348    17.6%
Total                    30,656   100.0%   36,077   100.0%

Source:  GSM directorate general, Data Consult

Table - 23
Domestic Coal Consumption, 2003 - 2004

(000 tons)

Company                         2003        2004

Coal-Fired Power Plant
Asam-asam                        568      554.31
Bukit Asam                  1,142.65    1,090.77
Freeport Indonesia            669.33      593.65
Newmont Nusa Tenggara            480      482.57
Newmont Minahasa                  24        3.64
Paiton I PJP                2,370.26    1,541.89
Paiton II Jawa Power        3,251.01    3,560.66
Paiton Energi               3,439.61    4,207.45
Sijantang (Ombilin)           229.58      182.64
Suralaya                   10,821.16   10,664.58
Subtotal                   22,998.61   22,882.19

Cement Industry
Bosowa Cement, PT             251.00      169.85
Indocement Tarjun, PT         269.56      368.41
Indocement Citeureup, PT      800.92    1,184.56
Indocement Cirebon, PT        313.50      385.94
Semen Andalas, PT             168.00      185.34
Semen Baturaja, PT             94.00      129.10
Semen Cibinong, PT            885.64      811.58
Semen Gresik, PT              715.17    1,063.64
Semen Padang, PT              692.40      454.21
Semen Tonasa, PT              577.77      783.86
Semen Kupang, PT                5.64       12.81
Subtotal                    4,773.62    5,549.31

Antam Tbk, PT                  62.27       46.27
Inco Tbk, PT                  109.51       51.16
Koba Tin, PT                   10.00        7.32
Timah Tbk, PT                  20.12       14.42
Subtotal                      201.91      119.18

Pulp Industry
Indah Kiat, PT              1,198.00      369.42
Inti Indorayon Utama, PT          -         8.35
Jaya Kertas, PT                32.55       54.50
Tjiwi Kimia, PT               473.95      728.63
Subtotal                    1,704.50    1,160.91

Briquette                      24.97       17.96
Others                        957.32    6,347.71

Notes: - Others mean could also includes coal sold and
distributed by coal traders and KP holders

- Briquette means coal for "coal briquette"

Source: Directorate of Mineral and Coal Enterprises

Table - 24
Average price of coal,
2001 - 2006 GAD 6700

Year   (US$/ton)

2001       31.58
2002       25.68
2003       26.27
2004       53.47

 Q1        51.90
 Q2        52.01
 Q3        48.06
 Q4        39.68

 Q1        47.31
 Q2        52.85

Source: Barlow Jonker Spot Price

Table - 25
Average export prices of coal, first quarter of 2006

                                                  Price (US$/ton)
No.   Company                        Calorie
                                   CV (Kcal/kg      Interval
                                     - adb)

1     PT Arutmin Indonesia         5061 - 6961    20.50 - 58.76
2     PT Kaltim Prima Coal         5048 - 6988    29.09 - 54.38
3     PT Multi harapan Utama       6402 - 6537    33.00 - 33.00
4     PT Indominco Mandiri         5814 - 6577    34.99 - 51.35
5     PT Berau Coal                5282 - 5527    22.00 - 35.50
6     PT Bahari Cakrawala Sebuku   5856 - 6420    27.17 - 33.10
7     PT Marunda Graha Mineral            n.a     54.00 - 70.50
8     PT Trubaindo Coal Mining            n.a     38.50 - 60.50
9     PT Lanna Harita Indonesia    5571 - 6008    36.55 - 42.28

No.         Company                Price (US$/ton)


1     PT Arutmin Indonesia           38.87
2     PT Kaltim Prima Coal           39.34
3     PT Multi harapan Utama         33.00
4     PT Indominco Mandiri           43.49
5     PT Berau Coal                  29.68
6     PT Bahari Cakrawala Sebuku     30.08
7     PT Marunda Graha Mineral       60.26
8     PT Trubaindo Coal Mining       46.64
9     PT Lanna Harita Indonesia      42.93
                      Average        40.69

Source: Various sources.

Table - 26
Coal price references  based on  COALINDO ICI, June 2006


Dates              ICI-1     ICI-2     ICI-3

5-9 June, 2006     51,66     42,06     30,84
12-16 June, 2006   49,95     41,86     30,39
19-23 June, 2006   48,94     41,56     29,84

Source: APBI-Coalindo Coal

Table - 27
Projection of coal requirement

(million tons)

Year   Electricity   Cement   industries   Total

2010          91.9      7.5          4.2   103.6
2015         135.0      9.5          6.2   150.7
2020         180.7     12.2          9.1   202.0
2025         219.9     15.6         12.2   247.7

Source: Data Consult
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Jun 1, 2006
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