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Coal is used in 70 percent of the world’s steel production and in 41 percent of the electricity produced by power plants. In 2011, global coal production totaled 7608 Mt,  increasing to 7831 Mt in 2012.

  • Indonesia ranks 4th among the world’s top 10 coal and mining producers.
  • Many new smelters are ready to be built.
  • The government is focusing on developing the rare earth elements industry.
  • Most mines in Indonesia are surface mines, concentrated on all big islands
  • Indonesia’s active Law 4/2009 on Mineral and Coal Mining treats both foreign and local investors equally and tenders have the same conditions and are transparent.

Coal resources and reserve distribution

Indonesia ranks 4th among the top 10 coal producers with production of 443 Mt in 2012.  Only China, the United States and India produce more than Indonesia. The biggest proportion of coal Indonesia exports is the medium-quality type (between 5100 and 6100 cal/gram).  Indonesia currently ranks 13th in global coal reserves, containing roughly 0.6 percent of total proven global coal reserves, according to the BP Statistical Review of World Energy. The Indonesian is concentrating on coal industry in Sumatra and Kalimantan. The biggest coal mining players are Adaro, Arutmin, Berau Coal, Kaltim Prima Coal, and Kideco Jaya Agung.


Other Mining Materials

Indonesia is not only known for mining coal, but also minerals. In 2014, nine companies held minerals export permission, such as Aneka Tambang (ores), Vale (nickel), Smelting, PT (cooper).

Indonesian coal quality

In mining production, there are significant gains to be made by processing other metal ores. About 94% of aluminium’s final value comes from the refining and smelting stages, and which also adds great value to nickel ore. The cost of building a smelting plant is high, but the government says that many new smelters are in the works, such as those of China Hongqiao and Shandong Nanshan Aluminum.

Rare earth metals and the alloys that contain them are used in many devices that people use every day. Such as computer memory chips, DVDs, rechargeable batteries, cell phones, magnets, fluorescent lighting, and many more. In 2010, annual global consumption of these minerals totaled 136,000 tons. To develop projects that process rare earth elements, the ministry is establishing a consortium comprising research agencies, such as the Agency for the Assessment and Application of Technology Agency (BPPT), the National Nuclear Energy (Batan), and various universities.

The Government also expects that foreign investors will be able to take part in developing rare earth elements in Indonesia. Indonesia currently uses Law 4/2009 on Mineral and Coal Mining.  It treats both foreign and local investors equally and no longer discriminates. Both foreign and domestic investors will be able to apply for a mining license. Issue the Exploration Licensing (IUP) must through the tender process rather than direct appointment. So it means a more transparent system compared to the old one.

Continue reading…

Indonesian Business Entities

Czech companies at InaGreen Tech fair in Jakarta, Indonesia


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