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Coal mining industry in Indonesia.

Current Issues

World's coal mining development

The world's coal consumption as a source of energy surged after the skyrocketing rise in the prices of oil in 2008. Coal trade, which has increased from year to year since 2004, was brisker after 2008.

The leapfrogging Leapfrogging is a theory of development in which developing countries skip inferior, less efficient, more expensive or more polluting technologies and industries and move directly to more advanced ones.  increase in demand for coal was attributable more too growing demand from fast expanding economies of two Asian giants, 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.  and China. Increase was also recorded in demand in Asean countries using coal as an alternative source of energy to more expensive oil.

In he past five years coal trade surged in volume from 755 million tons in 2004 to 941 million tons in 2009. Coal consumption was estimated to reach 4,646 million tons in 2004.

Coal has become the main alternative source of energy to oil as shown by the growing domination domination

the relationship between animals and humans in which little consideration is given to the rights of the animals. The prevailing sentiment is one of proprietary domination.
 of steam coal in coal trade. Steam coal is used mainly to generate electricity or to fuel boilers. In 1995, the world's steam coal trade was recorded only at 297 million tons, but in 2009, the figure shot up to 709 million tons.

Meanwhile, trade of coking coal which is used mainly as fuel in iron smelter, reached 196 million tons in 1995. The coking coal trade has been relatively stable rising only moderately over the next decade to reach 232 million tons in 2009.

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.  is world's second largest exporter

Indonesia has continued to boost its coal exports to meet growing demand in the world market and has become the second largest supplier of the material to the world market 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. . Meanwhile, the positions of 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.  among coal exporting countries had declined as a result of their growing domestic consumption. Most of their coal consumption has been used to meet domestic requirement.

Other major suppliers of coal to the world market include Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. , Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km).  and 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. .

Japan has become the world's largest importer of coal. Japan, a highly industrialized in·dus·tri·al·ize  
v. in·dus·tri·al·ized, in·dus·tri·al·iz·ing, in·dus·tri·al·iz·es
1. To develop industry in (a country or society, for example).

 country, has relied heavily on imports for energy including coal and oil and gas. In r 2009, Japan's imports of coal totaled 165 million tons

China, which once was the largest coal producer and one of major coal exporters in the world, has become a net importer because of growing domestic consumption. India, which also ranks among major coal producers, has become one of the world's largest importers of coal to fuel its fast expanding industries.

Indonesia, which is the second largest coal exporting country in the world, ranks only the 7th in production. China is the world's largest producer turning out 2.48 billion tons of coal in 2008, but it is also the world's largest consumer, followed by the United States and India.

The world's coal production was estimated at 7,271 million tons in 2008 or an increase of 3.2% from 7,047 million tons in 2007. 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. , the type with low calorific value calorific value
The calories or thermal units contained in one unit of a substance and released when the substance is burned.
 or low rank coal.

China and the United States are the largest producers and at the same time the largest consumers of coal in the world. In 2008, China's production of coal reached 2.84 billion tons and the United States recorded production at 1.17 billion tons. Most of their coal production is for domestic consumption. Meanwhile, Indonesia exports most of its coal production making it the second largest supplier to the world market although it is only the 7th largest in production. The Indonesia government, however, already started to restrict exports to guarantee domestic supply, which is fast growing especially to feed coal-fired power plants of the state electricity company 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.

The United States has the largest coal reserves accounting for 27% of the world's total reserves, followed by Russia, China and India. World's proven coal reserves totaled 909 billion tons in 2005, 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 World Energy Council--including 246 billion tons in the United States.

According to data from the World Energy Council in 2005, Indonesia's proven coal reserves totaled only 4.97 billion tons, or around 0.5% of the world's proven reserves. The figure, however, was much lower than 6.9 billion tons, according to the Energy and Mineral Resources Ministry. The proven reserves even shot up 18.8 billion tons in 2009 as a result of brisker explorations boosted by the rise in coal prices. The world's reserves also have increased as some of the reserves considered not commercially feasible have become profitable reserves.

Types of coal and specifications

The types of coal include hard coal and brown coal or lignite. Each type has different characteristics. Following are the types and characteristics of coal found in Indonesia:

* Hard coal, coal having calorific value of more than 5700 kcal/kg (23.26 MJ/kg). Hard coal includes steam coal, coking coal, 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 low calorific value. This type of coal includes 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.  used mainly to fuel power plants.

* Steam coal is used for boilers/steam generators and heating stoves. This type of coal includes anthracite and bituminous coal with gross calorific value of more than 23,865 kJ/kg (5700 kcal/kg) but lower than that of coking coal.

* Coking coal is the type of coal used mainly to produce coke as a reducing agent re·duc·ing agent
A substance that chemically reduces other substances, especially by donating an electron or electrons.
 in iron 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. . The gross calorific value of coking coal is more than 23,865 kJ/kg (5700 kcal/kg) ash free.

* Sub-bituminous coal is the type with gross calorific value between 17,435 kJ/kg (4165 kcal/kg) and 23,860 kJ/kg (5700 kcal/kg).

* Anthracite is the highest type in quality with the highest calorific value of more than 6,900 per kg. This type of coal has similar characteristics as those of steam coal.

* Lignite is the type of coal with gross calorific value of less than 4,165 kcal/kg (17.44 MJ/kg) containing volatile matter of more than 31% in dry condition. Lignite is also 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 at a high temperature. This type is used a reducing agent in steel smelters.

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

See also: Tertiary
 or around 65 million years ago. Most or around 83% of the coal is brown coal including lignite and sub-bituminous coal, with only 20% made up 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 ash and sulfuric sul·fu·ric  
Of, relating to, or containing sulfur, especially with valence 6.


Containing sulfur, especially sulfur with a valence of 6. Compare sulfurous.

Adj. 1.
 content, therefore, most of the country's coal is used for fuel or as steam coal causing low pollution.

Specifications of Coal

Each coal mine has coal with different characteristics. Meanwhile, the users such as power plants need coal with certain characteristics Specifications, therefore, are set by the users for coal they want with a number of quality parameters. Generally the quality parameters, according to the Bahana Tambang are as follows:

a) 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;.  (Calorific Value or CV, cal/gr or kcal/gr)

CV indicates the energy value found in the coal generated by the burning of carbon, hydrogen nitrogen and sulphur Sulphur, city, United States
Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish.

b) Moisture in percentage

Moisture includes free moisture (FM) and inherent moisture (IM) both making up Total Moisture (TM). Moisture influences the use of prime air to dry coal.

c) Volatile Matters (VM), in percentage

VM content influences burning perfection Perfection
Giotto’s O

perfect circle drawn effortlessly by Giotto. [Ital. Hist.: Brewer Dictionary, 463]

golden mean

or section
 and fire intensity based on the ratio of fixed carbon (FC) to volatile matters--called fuel ratio. The higher the fuel ratio, the more carbon in the coal not burned. If the ratio is more than 1.2, the burning is less perfect , slowing the process of burning.

d) Ash content in percentage

Ash will cause pollution, thirst thirst, sensation indicating the body's need for water. Dry or salty food and dry, dusty air may induce such a sensation by depleting moisture in the mucous membranes of the mouth and throat.  and corrosion of equipment.

e) Sulphur content, in percentage

Sulphur content in coal is stated in Total Sulphur (TS). TS determine corrosion of the cool side of the air heating especially when working temperature is lower than the sulphur moisture point. It also affects the effectiveness ash catching in the electrostatic precipitator Noun 1. electrostatic precipitator - removes dust particles from gases by electrostatic precipitation
Cottrell precipitator, precipitator

electrical device - a device that produces or is powered by electricity

f) Fixed Carbon (FC) in percentage

The value of carbon content is higher for coal of higher quality. Carbon content and volatile matters are used in calculating the quality of fuel in the form of fuel ratio.

g) Coal size

Coal size is measured on span of fine and rough particles <onlyinclude> This is a list of particles in particle physics, including currently known and hypothetical elementary particles, as well as the composite particles that can be built up from them. . The finest particles are not more than 3 mm and the roughest particles are as larger as 50 mm in diameter

h) Hard grove Grindability Index (HGI HGI Home Gateway Initiative
HGI hydroGEOPHYSICS, Inc (Tucson, Arizona)
HGI Harris Group Inc
HGI Heliographic Inertial
HGI Horn Group Inc (San Francisco, CA)
HGI Honda Granturismo Italia

The performance of a pulverizer pul·ver·ize  
v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es
1. To pound, crush, or grind to a powder or dust.

2. To demolish.

 or mill is designed on a certain HGI. The machine for lower HGI coal must operate below its standard value to turn out coal with an equal level of fineness.

Following are examples of specifications of coal produced by state coal miner PT Bukit Asam (PTBA PTBA Public Transportation Benefit Area
PTBA Proud To Be Australian
PTBA Proud to be American
PTBA Progressive Taekwondo & Budo Alliance
). This company sells five types of coal BA 58, BA 59, BA 67, and BA 70 with specifications as follows:

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 largest coal deposits

Coal resources in Indonesia are scattered in a number of large islands including Sumatra, Kalimantan, Java, Sulawesi and Papua. Sumatra and Kalimantan have the largest reserves. Based on official data in 2009 of the Geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations.  and Mineral Resources Directorate General, Sumatra had a total reserve of 52.44 billion tons or the largest, followed by Kalimantan with a total reserve of 51.92 billion tons.

According to data from the energy and mineral resources ministry in 2009, Indonesia's coal resources totaled 104.7 billion tons with proven reserves of 18.7 billion tons that commercially feasible. The commercial feasibility, however, depends on the coal price. 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.
 price of coal in the last two years has resulted in a surge in the reserve categorized cat·e·go·rize  
tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es
To put into a category or categories; classify.

 as proven.

The largest proven coal reserves are found in the province of South Sumatra. Based on data in January, 2009, South Sumatra had coal reserves totaling 9.54 billion tons. State company PT Bukit Asam (Persero) Tbk. has a large mine in Bukit Asam.


Other large reserves are found in the provinces of 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.  operated by a number of companies like PT Adaro, PT Kaltim Prima Coal, PT Arutmin, etc.

Era of Working Contracts Over

Coal mining industry in Indonesia has expanded rapidly ever since the government allowed the private sector including foreign investors to operate in coal mining under what was called Contract of Work (COW). Previously, only two state companies, which were later merged to form PT Tambang Batubara Bukit Asam (PT BA) were allowed to mine for coal in the country.

The first generation of COW was signed in 1983 with 10 private companies, of which nine have produced coal. Among them are now the largest producers such as PT Adaro, PT Kaltim Prima Coal and PT Arutmin. The second generation of COW was signed in 1993-1996 with 18 companies including 8 companies now in the entering the process of production . Four other have stopped activities or have their license revoked.

In 1996, through 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, the government revised the system of coal management including in investment aspect 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 bureaucracy and contracts. One of the most important revisions concerned regulation on contract from 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) 
) to Coal Cooperation Contract (CCC CCC

A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa.
) both with foreign (PMA PMA (papillary-marginal-attached),
n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation.

PMA Progressive muscular atrophy
) and domestic (PMDN PMDN Penanaman Modal Dalam Negeri ) investors.

The era of COW, therefore, was over after the House of Representatives passed the Bill in Law on Mineral and Coal Mining in January, 2009. The Law No. 4 of 2009 put an end of the era of COW after 41 years being effective. The new law replaced the Law No. 11 of 1967 . Under the new law, mining company operate with license from the government instead of contract.

The change in the system of management is the most crucial in the amendment to the mining regulation as with the license, it gives superiority to the position of the state. Under the COW system the positions of both sides were equal, therefore, any revision of the contract had to be with the approval of both sides.

The Mineral and Coal Law also made clearer decentralization de·cen·tral·ize  
v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es
1. To distribute the administrative functions or powers of (a central authority) among several local authorities.
 of authority in the management of the mining sector. Provincial and district administrations as well as city administrations are given the authority to issue mining licenses in their respective areas.

The mineral and coal law also recognizes the existence of individually mining enterprises. Another crucial matter concerns efforts to increase added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:

Added Value = Sales - Purchases - Labour Costs - Capital Costs
 of minerals by obliging mining companies to build their processing factories in the country.

The new law will likely force mining companies to revise their investment plans, which were earlier adjusted to the COW. The energy and mineral resources ministry said the new law gives better investment certainty. The ministry will have to work immediately to wrap up draft regulations as implementation for the new law.

The mineral and coal law, however, still has some controversial points that created polemic po·lem·ic  
1. A controversial argument, especially one refuting or attacking a specific opinion or doctrine.

2. A person engaged in or inclined to controversy, argument, or refutation.

 over transfer stipulation An agreement between attorneys that concerns business before a court and is designed to simplify or shorten litigation and save costs.

During the course of a civil lawsuit, criminal proceeding, or any other type of litigation, the opposing attorneys may come to an agreement
 which is regulated in Chapter 169 of points a, b and c.

The point a of the Chapter 169 says: The COW and working agreement issued before the new law was effective will remain effective until the end of their terms.

Many saw the Chapter as discriminative dis·crim·i·na·tive  
1. Drawing distinctions.

2. Marked by or showing prejudice: discriminative hiring practices.
 against new investors which have to go through stricter stipulations, which the old investors under the COW continue to enjoy incentives. The point a of Chapter 169 is seen as a protection for the existing COW miners.

Control of coal resources

Most coal resources have been controlled by companies operating under COW of the first generation like PT Adaro, PT Arutmin, PT Berau, PT Kaltim Prima Coal and state coal miner PT Tambang Batubara Bukit Asam.

Under the third generation of COW , there are two miners having coal reserves of more than 1 billion tons PT Pendopo Energi Batubara 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 mines have not started production. They are still in the process of explorations.

PT Yamabhumi is the only COW company operating in West Kalimantan and discovered a large reserve of 4.21 billion tons of coal. Based on the official data from the Geology and Mineral Resources Directorate General, by January, 2004, coal reserves in West Kalimantan were not more than 527 million tons.

Coal production up 13.9% per year

In the past 10 years the country's coal production has grown fast. The coal production grew 13.9% on the average annually in the period of 2001-2009 from 92 million tons to 226 million tons. The soaring oil prices forced many countries to look for alternative cheaper sources of energy. Coal is one of the most available alternative. Coal producers such as Indonesia, therefore, boosted their coal production. Indonesia has exported most of its coal production.

Coal production cost in Indonesia is relatively cheaper and Indonesian coal is very suitable to fuel power plants as it causes no much pollution with low 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.  content. It is expected that Indonesia's brown coal production will increase to meet growing demand especially from state electricity company PLN to fuel its coal-fired power plants.

Production by provinces

Kalimantan accounts for most or more than 90% of the country coal production. The largest producer among the provinces is East Kalimantan, which produced 127 million tons in 2009.

Kalimantan is strategically located being close to fast emerging markets in Asia notably China and India, making it more competitive facing other suppliers such as Australia.

South Sumatra has huge coal reserves, but most of the reserves are largely untapped with only PT Bukit Asam as major operator in that region.

Source: Geology and mineral resources directorate general, Data

Production by companies

Six companies dominate coal mining sector in the country accounting for more than 80% of he country's total production. The six companies are BUMI Energi (the owner of PT Kaltim Prima Coal and Arutmin), which produced around 58 million tons of \coal in 2009, Adaro with production of 40.6 million tons, Kideco 24.7 million tons, Banpu Group 20.7 million tons, Berau 14.3 million tons and state owned company PT Tambang Batubara Bukit Asam (PT BA) with production of 10.8 million tons in 2009.

The largest single producer is PT Adaro Indonesia, followed by PT Kaltim Prima Coal (KPC "Keeping parents clueless." See digispeak. ) with production of 40.6 million tons and 38.15 million tons respectively in 2009.

Domestic coal trade

The country exports most of its coal production. In 208, only 68 million tons of the country's total productions of 194 million tons were disposed dis·pose  
v. dis·posed, dis·pos·ing, dis·pos·es
1. To place or set in a particular order; arrange.

 of on the domestic market. In the past three years domestic consumption of coal has increased sharply especially for new power plants. Coal has been used as substitute for expensive oil fuel. The government is building new coal-fired power plants with a total capacity of 10,000 megawatts expected to be completed in 2011.

The soaring oil prices have also prompted the use of coal to fuel other industries in the country such as 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. , ceramic This article is about ceramic materials. For the fine art, see Ceramic art.

The word ceramic is derived from the Greek word κεραμικός (keramikos).
 and steel industries.

More than 70% of coal production exported

Most of the country's coal production is exported although there is growing portion sold on the domestic market. Domestic consumption has been less than 30% of the production. The soaring oil prices have resulted in an increase in coal requirement in the country.

From 2000 to 2008, exports rose 12.2 % per year from 587 million tons in 2000 to 160 million tons in 2008.

The largest portion of Indonesia's coal exports has been to Japan, Taiwan, South Korea, 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 India. Japan has been the largest country of destination to which exports totaled 24 million tons in 2005. Exports to Japan had not increased significantly over the past several years as that country has stopped building coal-fired power plants, which are seen as major sources of pollution in that country. Other Asian countries, however, need growing supply of coal to fuel power plants and other industries.

Coal requirement growing in Indonesia

Coal consumption in the country reached only 41 million tons in 2005 or around 30% of the country's total production. In the following years, the requirement rose to reach 69 million tons in 2008.

Until 2006, coal consumption in Indonesia as one of the world's largest coal producers, was relatively low. Coal accounted only for 35% of the country's energy consumption as against oil fuel, which accounted for 41%.

The high contribution of oil fuel was partly caused by 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.  provided by the government for oil fuel. In 2006, when oil price began to scale up to more than US$ 70 per barrel, the government and the business sector began to seek alternative sources of energy and coal came as the most potential and easily available.

In 2006, the government began the program of substituting oil fuel with coal as fuel for power plants. The state owned electricity company PLN launch a big program to build coal fired power plants with a total capacity of 10,000 MW. Many of the power plants have been operational in 2010. The program has pushed up demand for coal in the country. In 2010, an addition of 40.8 million tons of coal is estimated to be needed in 2010 for the new power plants.

In 2010, the government launched another plan to build more power plants with a total capacity of 10,000 MW to be completed in 2014. The new power plants include coal-fired and gas fired power plants. Other plants use renewable sources of energy including geothermal ge·o·ther·mal   also ge·o·ther·mic
Of or relating to the internal heat of the earth.

 and water energy. PT PLN estimated that coal consumption in 2014 will reach 95.3 million tons or an increase of 133.57% from coal consumption of 40.8 million tons in 2009. In 2014, coal requirement for power plants of PLN and Independent Power Producer (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. ) is predicted to rise to 95.3 million tons.

Based on data at PLN, a number of coal-fired power plants (PLTU PLTU Pct Line and Trunk Unit ) in Java with a total capacity of 11,725 MW are expected to be operational in 2010-2014. In the same period, Sumatra will have new steam powered electricity plants coming on line with a total capacity of 2,916 MW, Kalimantan 914 MW and in Sulawesi with a capacity of 822 MW. The steam powered electricity plants are dominated by coal-fired power plants.

Domestic market Obligation

Demand for implementation of the Domestic Market Obligation (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
) scheme is growing after PLN and IPP started building coal-fired power plants each with a total capacity of 10,000 MW.

Coal requirement, therefore, will increase sharply after the project has been completed.

In order to guarantee coal supply for the new power plants the government has issued regulation on DMO which requires coal producers to set aside part of their production for domestic consumption. The regulation of the minister for energy and mineral resources No 34 Year 2009 is aimed at coping with or preventing shortage in coal supply in the country.

The minimum percentage of coal production to be sold on the domestic market for 2010 is determined with a decision of the energy and mineral resources minister No 1604 in 2009. The percentage for 2011 is determined with a decision of the minister No. 2360 in 010.

It is estimated that domestic coal requirement in 2011 will reach 78.97 million tons including 66.28 million tons for PLTUs; 034 million tons for metallurgy industry. And 12.35 million tons for cement, fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. , pulp and textile industries.

In 2011, the country's coal production is predicted to reach 326.65 million tons. Coal producers, therefore, are required to set aside 24.17% or 78.97 million tons of their production for domestic consumption. See the following table.

Coal prices up again

The price of thermal coal has hit the level of US$ 100 per ton on spot market. The price of thermal coal on spot market according to the Global Newcastle has reached US$ 100 per ton while Chinese reserve shrank shrank  
A past tense of shrink.


a past tense of shrink

shrank shrink
 24%. The surge in the coal price followed the rising oil prices, now reaching more than US$80 per barrel. The market development has prompted investors to acquire coal stocks.

The surge in the coal prices in the world market since early 2010 is feared to affect coal supply for coal-fired power plants (PLTU) in Indonesia. In February 2010, the price of coal with a calorific value of 6,200 was US$ 83.46 per ton, up from US$ 35 in 2008. The surge in the price of coal followed improvement in the world's economic condition after the global financial crisis in mid 2008.

Early 2008, the price of coal with a calorific value of 6,200 was US$ 75 per ton, down to US$ 35 per ton by the end of 2008 in the wake of the global crisis.

In 2010, the coal prices continued to scale up to reach US$ 83.46 per ton by March. The price was US$ 71.56 per tons for coal with a calorific value of 5700; US$ 62.10 per ton for one with a calorific value of 5000 and US$ 50.07 for one having the lowest calorific value. Later the coal price continued to pick up. Toward the end of 2010, the price of thermal coal hit the level of US$ 100 per ton on spot market.

The Indonesian Association of Coal Producers (APBI APBI Accelerated Partial Breast Irradiation
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APBI Advanced Planning Briefings for Industry
APBI Advanced Planning for Business and Industry
) predicted the price of coal will rise next year to follow the growing demand both on the domestic and international markets.

APBI executive director Supriatna Sahala said coal prices are expected to reach US$90-US$100 per ton in 2011 for one of high category based on the Indonesian Coal Index (ICI (language) ICI - An extensible, interpretated language by Tim Long with syntax similar to C. ICI adds high-level garbage-collected associative data structures, exception handling, sets, regular expressions, and dynamic arrays.  1) and US$ 80 per ton for one of the category of ICI 2. The coal price hike is also expected to rise with the closure of a number of mines by China.

Coal benchmark price

The government has issued regulation No. 17 in 2010, on the procedure of determining the benchmark price of coal and minerals. The regulation of the energy and mineral resource minister came into effect on 23 September 2010.

This regulation as said in chapter 27 is not effective on coal producers which have signed contract on spot sales or term sales and have renegotiated price adjustment in line with the order of the minister or the director general.

For producers having signed contract for spot sales are required to comply with the regulation in 6 months. Producers having signed term sale contract are required to comply with the regulation in 12 months

This regulation is used by the government as the reference in calculating state revenues both by the Supreme Audit Agency (BPK BPK Badan Pemeriksa Keuangan (Indonesia)
BPK B-Cell Progenitor Kinase
BPK Banking and Payment Authority of Kosova
) and the Financial and Development Supervisory Board Supervisory board

The board of directors that represents stakeholders in the governance of the corporation.
 (BPKP BPKP Badan Pengawasan Keuangan Dan Pembangunan (Indonesian state finance and development survelliance committee) ).

Before, the ministerial Done under the direction of a supervisor; not involving discretion or policymaking.

Ministerial describes an act or a function that conforms to an instruction or a prescribed procedure. It connotes obedience.
 regulation No 17/2010 was issued the benchmark price was used only for coal mining companies holding contract of work (PKP PKP Public Knowledge Project (Canada)
PKP Public Key Partners (vendor)
PKP Penetrating Keratoplasty (cornea graft)
PKP Polskie Koleje Panstwowe
2B). With the ministerial regulation No. 17/2010, holders of IUP IUP Indiana University of Pennsylvania
IUP Intended Use Plan
IUP Intrauterine Pregnancy
IUP Institut Universitaire Professionalisé (French: University Institute of Professional Education)
IUP Intrauterine Pressure
 and IUPK licenses for coal and mineral production were required to sell minerals or coal based on a benchmark price both for domestic and international sales including sales to affiliates.

All holders of mining license are required to comply with the ministerial regulation No. 17/2010. The regulation serves as a benchmark for both producers and consumers in calculating prices under spot or contract sales.

Determination of prices also involves governors and the regents or mayors as said in chapter 9. A governor determines the benchmark prices for mining products every month through coordination with the director general. Mayors or regents coordinate with the governor.

A mechanism is determined to set prices based on the prevailing regulation in international market. The government uses four coal price indices--New Castle Index, Global Coal, Platts, and Indonesia Coal Index (ICI).

In October 2010, the government determined coal benchmark price (HBA) at US$92.68 per ton. The benchmark price is an average of 4 (four) coal price indices--Indonesia Coal Index/ICI 1, Platts 1, New Castle Export Index/NEX, and New Castle Global Coal Index/GC. Coal quality used in calculating HBA is Gross Calorific Value (GCV GCV Ganciclovir
GCV Generalized Cross Validation
GCV Gross Calorific Value
GCV Great Cardiac Vein
GCV Gewone Commanditaire Vennootschap (Dutch)
GCV Gonsenheimer Carneval-Verein
GCV Gross Caloric Value
) 6322 kcal/kg gar; Total Moisture (TM) 8%; Total Sulfur (TS) 0.8%; Ash Content (AC) 15%.

Coal marker marker /mark·er/ (mahrk´er) something that identifies or that is used to identify.

tumor marker
 price is set by counting Marker Coal Benchmark Price. There are 8 types of coal produced in Indonesia selected as marker coal. The coal types reflect the quality of coal traded most and best known in the market. The marker coal benchmark price is used as reference to determine the prices of other coal of the same type.

Prospects of coal business and opportunities in Indonesia

In the coming years, the world will continue to seek renewable sources of energy as an alternative to oil fuel. Therefore, coal and natural gas will be higher in demand. Coal will be the main alternative especially for power plants. Demand for electric energy is growing fast in emerging markets like China, India and Indonesia.

Coal requirement in Indonesia is forecast to grow fast in the coming years. In 2014, more units of PLTUs will come on line pushing up coal requirement in the country. Coal requirement for power plants in 2014 is predicted to reach 95.3 million tons or doubling requirement in 2009. PLN said a number of new PLTUs in Java with a total capacity of 11,725 MW will come on stream in 2010-2014. The capacity of new PLTUs in Sumatra in the same period is 2,916 MW, in Kalimantan 914 MW and in Sulawesi it is 822 MW.

Coal demand is predicted to continue to grow until 2010 especially from China and India to feed heir power plants. Meanwhile, supply is forecast to decline in international market with China restricting coal exports since 2008 through imposition The printing of pages on a single sheet of paper in a particular order so that they come out in the correct sequence when cut and folded.  of a 10% export tax to better guarantee domestic supply. Supplies from Australia and South Africa are also predicted to decline resulting in a surge in price of that commodity.

Indonesia has taken over the lead in coal exports from Australia. Currently the main buyers of coal from Indonesia are Japan, South Korea and Taiwan, other than China and India which are relatively new customers for Indonesia.

Although the price of coal has reached US$ 80 per ton, coal is still cheaper than oil and LNG LNG (liquefied natural gas): see under natural gas. . Based on a survey in 2008, generating 1 MGW/h of electricity using coal was US$ 12.98 (assuming coal price of US$ 90 per ton) as against a cost of US$ 30 with oil fuel (assuming oil price is US$ 54 per barrel) and US$ 20.47 using LNG (assuming LNG price is US$6/mmbtu) (Bagus P. Perdana, Coal Outlook, 2008).

Currently coal price has climbed again after declining in 2009. The resurge re·surge  
intr.v. re·surged, re·surg·ing, re·surg·es
1. To rise again; experience resurgence.

2. To sweep or surge back again.
 in oil price now nearing US$ 100 per barrels makes demand higher for coal especially to generate electricity.

The prospect of investment in coal mining in Indonesia, therefore, remains encouraging. Based on a survey, coal producers recorded profit twice as large as coal miners in Australia.

Based on a study by the PWC in 2008, the net profit margin of coal miners in Indonesia was 22.5% in 2006, up to 29.2% in 2007 before down to 22.8% in 2008. Coal miners in Indonesia posted a decline in debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity.  and enjoyed an increase in assets.

Other performance indicator is earning before interest, tax and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) margin of 41.2% in 2006, up to 48.6% in 2007 before down to 38.7% in 2008. The Return on Capital Employed Return on capital employed (ROCE)

Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets).
 was 26% in 2006, up to 40.6 % in 2007, before down to 24.1% in 2008. Return on Shareholders fund was 39.4% in 2006; up to 63.7% in 2007 before down to 39% in 2008. Net Debt to Equity Ratio was 46.5% in 2006, down to 23.9% in 2007 but up again in 2008 to 27, 8%.

With coal prices resurging, the financial performance of coal producers in the country is expected to improve in 2010. The prospects remain encouraging in the next 10 years with considerable reserves and growing demand on the domestic market.
World's coal trade, 1995 -2009

(Million tons)

Year           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
2009            709 Mt       232 Mt           941 Mt

Sources: BP, IEA, IISI, SSY

Main coal exporting countries in the world, 2005-2008

(000 tons)

                     2005         2006         2007         2008

World               936,044    1,000,619    1,073,409    1,087,330
Australia           254,978      254,960      268,510      277,991
Indonesia           142,038      192,216      221,856      228,154
Russia               98,590      103,351      112,231      115,418
United States        49,942       49,647       59,163       81,519
Colombia             59,119       68,337       74,517       81,470
China                93,079       85,626       75,409       68,751
South Africa         78,751       75,781       72,555       68,168
Canada               31,259       31,243       33,354       36,541
Kazakhstan           28,294       30,512       32,764       29,971
Vietnam              19,827       23,496       35,144       22,773

Sources: BP, IEA, IISI, SSY

Largest coal importing countries--2009

(Million tons)

Country             Total        Steam        Coking

Japan                 165Mt        113Mt         52Mt
PR China              137Mt        102Mt         35Mt
South Korea           103Mt         82Mt         21Mt
India                  67Mt         44Mt         23Mt
Chinese Tapei          60Mt         57Mt          3Mt
Germany                38Mt         32Mt          6Mt
UK                     38Mt         33Mt          5Mt

Sources: BP, IEA, IISI, SSY

Growth of world's coal production, 1999-2008

(Million MT)

Year           World      Pertumbuhan (%)

1999             4,902
2000             4,893              -0.2%
2001             5,162               5.5%
2002             5,275               2.2%
2003             5,667               7.4%
2004             6,223               9.8%
2005             6,542               5.1%
2006             6,769               3.5%
2007             7,047               4.1%
2008             7,271               3.2%

Sources: BP, IEA, IISI, SSY

World's largest coal producing countries, 2004-2009

(Million tons)

Region and Country      2004      2005      2006      2007      2008

North America           1,196     1,215     1,248     1,236     1,259
  Canada                   73        72        73        75        75
  Mexico                   11        12        13        14        13
  United States         1,112     1,131     1,163     1,147     1,172
Central and South
    America                73        81        88        93       104
  Colombia                 59        65        72        77        87
  Other                    14        16        16        16        18

Europe 1                  809       793       791       799       774
  Bosnia and
    Herzegovina            10        10        11        12        11
  Bulgaria                 29        27        28        31        32
  Czech Republic           68        68        69        69        66
  Former Serbia and
    Montenegro             45        39         0         0         0
  Germany                 233       227       221       226       214
  Greece                   77        76        71        73        72
  Hungary                  12        11        11        11        10
  Macedonia                 8         8         7         7         6
  Poland                  178       175       171       160       158
  Romania                  35        34        38        39        38
  Slovenia                  5         5         5         5         5
  Spain                    23        21        20        19        11
  Turkey                   51        64        71        83        84
  United Kingdom           27        22        20        18        19
  Other                     7         5        46        46        48

Eurasia 2                 466       483       507       514       563
  Estonia                  15        16        16        18        18
  Kazakhstan               96        95       106       108       120
  Russia                  285       301       314       319       356
  Ukraine                  66        67        68        65        66
  Other                     4         4         4         4         3

Middle East                 1         1         2         2         2

Africa                    274       276       276       279       266
  South Africa            268       270       270       273       260
  Zimbabwe                  4         4         4         4         4
  Other                     2         2         2         2         2

Asia and Oceania 1      3,404     3,693     3,858     4,124     4,303
  Australia               388       405       405       429       439
  China                 2,300     2,501     2,572     2,744     2,848
  India                   447       473       500       528       568
  Indonesia               157       188       250       292       313
  Mongolia                  7         8         9        11        11
  North Korea              35        38        39        33        41
  South Korea               4         3         3         3         3
  Thailand                 22        23        21        20        20
  Vietnam                  28        36        43        47        44
  Other                    16        18        16        17        15

World                   6,223     6,542     6,769     7,047     7,271

Sources: US EIA, IES,

World's proven coal reserves, 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

                             of total
        Country                            R/P 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

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.

Types and Characteristics of Coal

 Types of
   coal            Characteristics                    Uses

Anthracite    --High carbon content        --Iron ore smelter
              --Sulfur 1 %                 --Smokeless basic material
              --Calorie 6,900 k. cal/kg    --Active carbon

Bituminous    --Volatile matters 15--23%   --Cement factories
              --Sulfur 1%                  --Other industries
              --Calorie 5,900 k. cal/kg

Sub           --<8%                        --Power plants
Bituminous    --Sulfur <0.6%               --Other industries
              --Calorie >4.900 k. cal/kg

Lignite       --Abu <6%                    --Power plants
              --Sulfur <0.5%               --Other industries
              --Calorie >4,000 k. cal/kg

 Types of      of deposits         Mining
   coal            (%)            methods

Anthracite         0.36         Underground

Bituminous        14.38           Open pit

Sub               26.63           Open pit
Bituminous                         mining

Lignite           56.83           Open pit

Source: General mining/coal directorate general

Specifications of coal of PT BA

Coal Brand     CV (Kcal/        TM           IM          Ash
                kg, adb)     (%, ar)      (%,adb)      (%, adb)

BA 58             5800          28          14.0         8.0
BA 59             5900          28          14.0         8.0
BA 63             6300          22          10.5         7.0
BA 67             6700          18           9.0         7.0
BA 70             7000          14           7.0         7.0

Coal Brand         VM           FC           TS
                (%, adb)     (%, adb)     (%, adb)

BA 58              40          37.0         0.8
BA 59              40          37.5         0.8
BA 63              40          43.0         0.8
BA 67              40          44.5         0.7
BA 70              40          47.5         0.7

Source: PT BA

Locations of coal reserves in Indonesia
By locations and volume per 1 January 2009

(million Tons)


        Province           Hyporthetic      Inferred      Indicated

Banten                            5.47           5.75           0.00
West Java                         0.00           0.00           0.00
Central java                      0.00           0.82           0.00
East Java                         0.00           0.08           0.00
Naggroe Aceh Darussalam           0.00         346.35          13.40
North Sumatera                    0.00           7.00           0.00
Riau                             12.79         467.89           6.04
West Sumatera                    24.95         475.94          42.72
Bengkulu                         15.15         113.09           8.11
Jambi                           190.84       1,462.03         243.00
South Sumatera               19,909.99      10,970.04      10,321.10
Lapung                            0.00         106.95           0.00
West Kalimantan                  42.12         482.60           1.32
Central Kalimantan              122.72         974.40          17.33
South Kalimantan                  0.00       5,525.16         362.59
East Kalimantan              14,206.97      10,995.62       4,689.37
South Sulawesi                    0.00         144.94          33.09
Central Sulawesi                  0.00           1.98           0.00
North Maluku                      2.13           0.00           0.00
West Irian Jaya                  89.40          61.86           0.00
Papua                             0.00           2.16           0.00
Total                        34,622.53      32,144.66      15,738.07

                                     Resource              Reserves

        Province             Measured        Total

Banten                            2.09          13.31             --
West Java                         0.00           0.00           0.00
Central java                      0.00           0.82           0.00
East Java                         0.00           0.08           0.00
Naggroe Aceh Darussalam          90.40         450.15           0.00
North Sumatera                   19.97          26.97           0.00
Riau                          1,280.82       1,767.54       1,940.37
West Sumatera                   188.55         732.16          36.75
Bengkulu                         62.30         198.65          21.12
Jambi                           173.20       2,069.07           9.00
South Sumatera                5,883.94      47,085.07       9,542.01
Lapung                            0.00         106.95           0.00
West Kalimantan                   1.48         527.52           0.00
Central Kalimantan              471.89       1,586.34          74.28
South Kalimantan               6377.81      12,265.56       3,523.24
East Kalimantan               7,646.03      37,537.99       3,633.04
South Sulawesi                   53.09         231.12           0.12
Central Sulawesi                  0.00           1.98           0.00
North Maluku                      0.00           2.13           0.00
West Irian Jaya                   0.00         151.26           0.00
Papua                             0.00           2.16           0.00
Total                        22,251.57     104,756.83      18,779.93

Source: Coal and Mineral Statistics, Geology and Mineral Resources
Directorate General Per 1 January 2009

Miners having largest coal reserves in Indonesia (more than 1
billion tons)

         Companies                   Status              Regency

PT BA                          State Owned

Adaro Indonesia, PT            Generation I         Paringin,

Arutmin Indonesia, PT          Generation I         Kotabaru, Tanah

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 Batubara, PT    Generation III       Muara Enim

Yamabhumi Palaka, PT           Generation III       Sintang

         Companies               Province       ton)      Description

PT BA                          South          6.559.00    Producing

Adaro Indonesia, PT            South          1,967.42    Producing

Arutmin Indonesia, PT          South          2,513.90    Producing

Berau Coal, PT                 East           2,745.76    Producing

Indominco Mandiri, PT          East           1,249.70    Producing

Kaltim  Prima Coal, PT         East           3,472.00    Producing

Kideco Jaya Agung, PT          East           1,050.40    Producing

Pendopo Energi Batubara, PT    South          1,525.83    Exploration

Yamabhumi Palaka, PT           West           4,212.00    Exploration/
                               kalimantan                 Feasibility

Source: Geology and Mineral Resources Directorate General

Indonesia's coal production, 2001--2010 *)

Year               Production      Growth %

2001                    92.54
2002                    104.2          12,6%
2003                   112.79           8,2%
2004                   129.64          14,9%
2005                   149.66          15,4%
2006                   179.58          20,0%
2007                   178.79          -0,4%
2008                   194.39           8,7%
2009                   226.17          16,3%
2010 *)                125.17
Average growth                         13,7%

Note: *) up to April 2010; Source: Geology and mineral resources
directorate general, Data Consult

Coal production by provinces, 2005-2009


      Regions               2005              2009

West Sumatra                   81.576             1.770
South Sumatra               8.559.124        11.590.592
Riau                          555.528         1.514.753
Bengkulu                      219.059           391.474
Jambi                                         3.967.804
South Kalimantan           56.828.990        80.072.888
East Kalimantan            82.127.897       127.081.633
Central Kalimantan                            1.549.526
Total                     149.666.233       226.170.443

Source: Geology and mineral resources directorate general, Data

Coal production per year by companies, 2009--2010 *)

       Companies             2,009          2,010

Adaro Indonesia, PT        40,590,189     18,008,173
Kaltim Prima Coal, PT      38,154,491     22,623,884
Kideco Jaya Agung, PT      24,692,299     14,350,902
Baturona Adimulya, PT              --         68,322
Batualam Selaras, PT               --          4,529
Total                     226,170,443    125,176,525

Note: *) provisional data up to April 2010

Domestic coal trade, 2000 -2008


  Year         Total

2000         22,340,845
2001         28,363,185
2002         29,257,002
2003         39,273,850
2004         36,081,734
2005         41,350,737
2006         48,995,069
2007         60,470,001
2008         69,106,931

Source : Directorate General of Mineral, Coal
and Geothermal

Indonesia's coal export by countries of destination

            Japan      Taiwan       Asian      Europe

2000        13,177      13,520      19,819       8,862
2001        15,216      11,507      20,441      10,227
2002        16,530      13,100      30,606       9,295
2003        17,992      14,144      34,022      12,787
2004        19,013      16,678      34,687      11,987
2005        24,237      14,524      41,394      14,824
2006        23,128      17,070      49,590      21,005
2007        24,322      18,112      63,358      15,839
2008        26,948      14,887      70,606      19,207

                   Coal             Total
           Pacific     Others

2000         1,876       1,206      58,460
2001         2,161       5,730      65,281
2002         2,555       1,451      73,536
2003         3,118       3,618      85,681
2004         3,584       7,809      93,759
2005         3,928      11,882     110,790
2006         5,263      27,577     143,633
2007         4,598      33,644     159,874
2008         2,964      25,389     160,000

Source: Coal directorate, Data Consult

Domestic coal consumption by sectors

 User industries        2005           2006

Iron & Steel            221,309        299,990
Power Plant          25,669,226     27,758,317
Ceramic & Cement      5,152,162      5,300,552
Pulp & Paper          1,188,323      1,216,384
Briquette                28,216         36,018
Others                9,091,501     14,383,808
Total                41,350,737     48,995,069

 User industries        2007           2008

Iron & Steel            282,730        317,856
Power Plant          31,420,000     31,041,000
Ceramic & Cement      6,443,864      6,842,403
Pulp & Paper          1,526,095      1,251,000
Briquette                25,120         43,000
Others               20,772,192     29,611,672
Total                60,470,001     69,106,931

Source: Geothermal and mineral resources directorate general, Data
Consult, processed

PLTUs coming on line in 2010-2014

   Location         Year         New power plants coming on stream

Java             2010         PLTU Suralaya (625 MW), PLTU Indramayu
                              (900 MW), PLTU Rembang (630 MW), and
                              PLTU Paitons 7 (660 MW).

                 2011         PLTU Lontar (945 MW), PLTU Pelabuhan
                              Ratu (1.050 MW), PLTU Pacitan (630 MW),
                              and PLTU Cirebon (660 MW).

                 2012         PLTU Paitons 3 (815 MW), PLTU
                              Tanjungjati B 3-4 (1.320 MW), PLTU
                              Celukan Bawang (130 MW), PLTU Tanjung
                              Awar-awar (700 MW), PLTU Adipala (660
                              MW) and PLTU Central Java (2.000 MW).

PLTUs in         2010-2014    PLTU Meulaboh (200 MW), PLTU Pangkalan
Sumatra                       Susu (440 MW), PLTU Tarahan (200 MW),
                              PLTU Simpang Belimbing 227 (MW), PLTU
                              Pesisir Sumbar (224 MW), PLTU Riau
                              (2x100 MW), PLTU Pangkalan Susu (2x200
                              MW), PLTU Banjasari (200 MW), PLTU
                              South Sumatra 2 (225 MW), PLTU Mulut
                              Tambang Sumsel unit 1 (300 MW) and PLTU
                              Mulut Tambang Riau unit 1 (300 MW).

P. Kalimantan    2010-2014    PLTU Asam-asam (130 MW), PLTU Pangkalan
                              Bun (14 MW), PLTU New Kaltim (50 MW),
                              PLTU Pulang Pisau (120 MW), PLTU Muara
                              Jawa (200 MW), PLTU New Kalsel (2x100
                              MW), and PLTU New Kaltim (2x100 MW).

P. Sulawesi      2010-2014    PLTU North Sulawesi 2 (50 MW), PLTU
                              Gorontalo (50 MW), PLTU Molotabu (20
                              MW), PLTU North Sulawesi 1 (2x25MW),
                              PLTU Gorontalo (12 MW), PLTU Kotamobagu
                              I (40 MW), PLTU Barru (100 MW), PLTU
                              South Sulawesi 1 (2x100 MW), PLTU
                              Talakar (2x100 MW), PLTU Talakar 2
                              (1x100 MW).

Source: PLN

Estimate of domestic coal consumption by sectors, 2011

No       Companies/consumers        Tons     Percentage    GCV (GAR)

1     PLTU
      a. PT PLN (Persero)           55,82       70,69%    4.000-5.200
      b. IPP                         8,97       11,36%    4.000-5.200
      c. PT Freeport Indonesia       0,83        1,05%    5.650-6.150
      d. PT Newmont Nusa
         Tenggara                    0,47        0,60%            5.2
      e. PT Pusaka Jaya Palu
         Power                       0,19        0,24%              5
      a. PT Inco                     0,14        0,18%            5.9
      b. PT Antam Tbk                0,20        0,25%        > 6.000
      a. Semen                       8,86       11,22%    4.100-6.300
      b. Pupuk                       0,92        1,16%    4.000-5.000
      c. Pulp                        0,60        0,76%    4.500-5.000
      d. Tekstil dan Produk
         Tekstil                     1,97        2,49%    5.000-6.500
      Total                         78,97         100%

Source: Energy and mineral resource ministry

Average price of coal, 2001-2006 GAD 6700

Year              Price (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

Sources: Barlow Jonker Spot Price

Marker price for evaluation in September 2010

                                       Typical quality

                            CV (kcal/        TM
NO           BRAND           kg GAR)      (%, ar)       TS (%)

      Main types of coal

1     Gunung Bayan 1          7.000         10,0         1,0
2     Prima Coal              6.700         12,0         0,6
3     Pinang                  6.200         14,5         0,6
4     Indominco IM_East       5.700         17,5         1,6
5     Melawan Coal            5.400         22,5         0,4
6     Envirocoal              5.000         26,0         0,1
7     Jorong J-1              4.400         32,0         0,3
8     Ecocoal                 4.200         35,0         0,2

                   price for
                   coal price
       Typical     evaluation
       quality         in
NO     Ash (%)        2010

1        15,0        99,79
2        5,0         97,55
3        5,5         87,92
4        4,8         75,50
5        5,0         70,89
6        1,2         65,20
7        4,2         52,58
8        3,9         47,61

Sources : energy and mineral resource ministry
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDI
Date:Oct 1, 2010
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