Jakarta. Beijing. Hong Kong. Singapore. Taipei.

The bulk of Indonesia’s coal resources are in the provinces of East Kalimantan, South Kalimantan and South Sumatra. The main coal prospects developed today are on the islands of Sumatra and Kalimantan, with the latter accounting for most of the nation’s production. The Ministry of Energy and Mineral Resources estimated in 2011 that Indonesia has 160 billion tons of coal resources and 28 billion tons of coal reserves. Low-rank and sub-bituminous coal accounts for 75% of thermal coal reserves and will thus contribute meaningfully to the increase in Indonesian coal production in the future.

 

Bituminous and sub-bituminous coal accounts for most of Indonesia’s thermal coal production and exports, although there has been a rapid rise in the amount of low-rank coals being mined, and production and exports are expected to grow further. By 2021, low rank coals exports are expected to constitute over 50% of total Indonesian coal exports.

 

Indonesia’s proximity to key importers and abundant export production has made it the world’s largest supplier of seaborne thermal coal since 2005. Exports are expected to reach 330 million tons in 2013, almost 40% of the total seaborne demand. Indonesia is expected to remain the largest exporter of thermal coal in the future due to cost competitiveness, transport and infrastructure advantages.

 

The purchase of low-priced Indonesian coal, especially with low ash, low sulphur, and mid-to-high-calorific value levels for blending or for stand-alone use, has been a core strategy for major power stations around the world looking to reduce emissions to comply with increasingly stringent regulations.