The Indonesian coal industry

In this comprehensive article the authors describe the origins and progress of the Indonesian coal industry and the role it plays, and will play, in the domestic energy scene and world coal trade. In the '80s, the Indonesian coal industry laid the basis for major expansion such that coal production rose from under a million tonnes in 1983 to 10.6 million tonnes in 1990, 50.9 million tonnes by 1996 and 61.2 million tonnes in 1992. At the same time, exports have increased from 0.4 million tonnes to 44.8 million tonnes. Current export levels are higher than originally expected, due in part to a slow down in the construction of electric power stations and a partial switch to natural gas. This has slowed the rate at which domestic coal demand has built up. The majority of coals currently exported are low rank steam coals, but some of the higher rank and very low ash coals are used for blast furnace injection, and a very small proportion may even be used within coking blends, even though they have poor coking properties. The Indonesian coal industry has developed very rapidly over the last six years to become a significant exporter, especially within the ASEAN context. The resources base appears to be large enough to support further increases in production above those already planned. It is probable that resources and reserves can be increased above the current levels. It is likely that some reserves of high value coals can be found, but it is also probable that the majority of additions to reserves will be lower in rank (and therefore quality) compared with the average of coals currently being mined. Reserves of qualities suitable for export will support that industry for a considerable period of time. However, in the longer term, the emphasis of production will increasingly swing to the domestic market