Recognising the urgent need to transition to more sustainable energy sources the Indonesian government has embarked on a strategic journey toward the early decommissioning of coal powered plants Indonesia is one of the world s largest coal producer and consumer with 254 operational coal fired power plants with a total capacity of
Indonesia Coal Industry Proved reserves primary energy consumption • Indonesia s proven coal reserves are approximately billion tons as of 2020 It ranks seventh in the world and is the second largest in Asia after China and India Figure 1 • Coal accounted for about 45% of primary energy consumption in 2022 Like proved
1 Coal Production Since the early 1990 s Indonesian coal mining in Indonesia has grown dramatically The World Coal Institute estimates that in 2008 Indonesia mined 246 million tonnes of coal with just over 200 millions tonnes of this exported 2008 coal exports comprised 173 million tonnes of steam coal and 30 million tonnes of coking coal In 2009 Indonesia was the world s
Dependence on the coal sector also results in substantial environmental impacts in coal mining regions It is estimated that 143 592 hectares of natural forest in Kalimantan have been deforested and converted into coal mines In addition coal mining activities and coal power generation also significantly contribute to energy sector emissions
6 Under GR 5/2021 mineral and coal mining are classified as high risk activities that need a NIB and additional licenses GR 96/2021 sets out the following licenses for mining activities IUP; For foreign investors setting up a mining company in Indonesia for lucrative returns they must be aware of the document intensive procedures
Over the five years to 2022 production from Indonesia increased by a CAGR of 5% and is expected to drop by a CAGR of % between 2023 and 2027 GlobalData uses proprietary data and analytics to provide a complete picture of this market in its Indonesia Coal Mining to 2030 report Buy the report here
Mineral and coal wealth in Indonesia has long been exploited and exploited since before Indonesia s independence The mineral and coal management and exploitation scheme has undergone changes
Coal determined at the sale point on a Free on Board basis 17 Contract of Work hereinafter abbreviated to as KK is an agreement between the Government of the Republic of Indonesia and an Indonesian legal entity to perform mineral mining business activities 18 Coal Mining Business Work Agreement hereinafter referred
risk in 2020 as the coal mining companies would be operating on a net negative cash per tonne basis if they have to pay the % royalty This raises concerns For Indonesian coal companies royalty payments are always a significant cost Coal companies operating under a coal contract of work CCoW pay a royalty rate that is
Indonesian Mining Law Overview Law of 2009 regarding Mineral and Coal Mining the Mining Law has been a legal basis and a guideline for mining management in Indonesia In its implementation the Mining Law has been submitted seven times for judicial review to the Constitutional Court Mahkamah Konstitusi "MK"
In addition also on November 24 2023 the first shipment of 11 000 tons of coking coal exported by Xuyang Group to Indonesia was loaded at Rizhao Port and delivered to Xuyang Weishan as scheduled The second batch of 30 000 tons of coking coal was also completed and collected at the port simultaneously corporate developments and
Coal Mining is the mining of carbon sediments that can be found in the earth and includes solid bitumen peat and asphalt 6 Mining Efforts are activities within the framework of exploiting minerals and coal and which includes the Indonesia 24 Mining Services are support services that are related to mining activities 25 Analysis
The FTB Project owned by Bayan Resources is a surface mine located in East Kalimantan The mine produced an estimated MTPA of coal in 2020 The mine will operate until 2055 5 Indominco Mandiri Mine Owned by Banpu the Indominco Mandiri Mine is a surface mine located in East Kalimantan It produced an estimated MTPA of coal in 2020
Source Statista Insights Diverse Mining Landscape Indonesia s mining sector is diverse ranging from coal and natural gas to precious metals like diversity ensures a balanced economic contribution from the mining sector Leading Coal Producer With a targeted production of million metric tons in 2023 Indonesia is positioning itself as a dominant
Indonesian Production of Coal and Minerals In 2022 the coal production target has been set at 663 million tonnes Initially Indonesian miners were expected to struggle to meet this target due to coal export restrictions imposed by the Indonesian Government in January 2022 to tackle the issue of lack of domestic coal supply for power stations
Indonesia is the world s largest coal exporter in 2018 and the second largest coal trade partner for Japan after Australia In 2018 Indonesian coal accounted for 15% million tons of total coal imports in Japan Japan mainly imports steam coal from Indonesia and relatively high calorific value bituminous coal among Indonesian coal
Founded on 20th September 1989 as to response to the challenges of coal mining industry in Indonesia The APBI ICMA is a non government nonprofit and non political organization that embraces both upstream exploration and exploitation and downstream
Currently the coal industry in Indonesia also tends to be synonymous with mining and sales business activities Apart from that Indonesian coal is mostly used as an energy source in power plants
The Republic of Indonesia s government has enacted regulations requiring the Mineral and Coal Mining Safety Management System SMKP MINERBA to be applied as detailed in MEMR Regulation No 26 of
At the end of December 2021 the Indonesian government issued several policies related to coal export through inter alia Letters issued by the Directorate General of Mineral and Coal "DGMC" of the Ministry of Energy and Mineral Resources "MEMR" 1 These Letters essentially ban the coal export by prohibiting the holders of Mining Business Permits Izin Usaha Pertambangan
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Indonesia s coal capacity with over half built since 2016 remain a big challenge for the Indonesia Just Energy Transition Partnership JETP targets The growth of captive coal power plants is driven by Indonesia s economic and industrial strategies including critical mineral mining industry industrial parks and
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