APEC CLEAN FOSSIL ENERGY

TECHNICAL AND POLICY SEMINAR

Coal Supply and Development

In Indonesia

Bambang Setiawan
Director of Programme Guidance
Directorate General of Mineral Coal and Geothermal
Ministry of Energy and Mineral Resources
Republic of Indonesia
2006
 COAL RESOURCES
z At present, it is known that the Indonesia coal resources potential
is around 57 billion tons.

z 7 billions can be categorized as mineables reserves.

z The quality of coal varies and mostly consists of low grade coal
or lignite (58%), sub-bituminous (27%); bituminous (14%) and a
little amount of anthracite.

z The low grade coals are characterized by it high moisture

content of 20-40% and low calorific value of less than 5000
kkal/kg.
 COAL RESOURCES, RESERVES AND QUALITY

1%

5% 30 %
3%
39 % 13 %

Resources Reserves Very High 1%

(MillionTon) (Million Ton) High 16%
Low 26%
Measured 12,466.42
Medium 57%
Indicated 20,533.56
Quality Criteria (cal/gr)
Inferred 24,314.96
Low Rank < 5100
Hypothetic 532.80
Medium Rank 5100 - 6100
TOTAL 57,847.74 6,981.62 High Rank 6100 - 7100
Very High Rank >7100
 CURRENT SITUATION OF COAL INDUSTRY
‰ Type of License :
„ Mining Authorization Holder (MA): 442 Companies; Status in
Production Stage : 169 Companies (Central Gov Licenses: 40
Companies: Local Government License: 129 Companies). 273
companies in general survey and exploration stages
„ Coal Contract of Work (CCoW): 89 Companies, Status in
Production Stage : 24 Companies and the rest in general survey,
exploration, feasibility and construction stages.

‰ Mining Players:
„ State Own Enterprises : 2 Companies
„ Private National Companies : 65 Companies
„ Foreign Mining Companies : 18 Companies

‰ Total Coal Production in 2005 : 134 Mt, Coal Export 93 Mt

‰ Total Coal Terminal is 17 with capacity between 5,000 – 200,000

DWT

‰ Coal Contribution in National Energy Mix is 14,1% in 2003 and about

46% for electricity sector
 COAL EXPORT
1. Indonesia coal export have increased from time to
time, over 74.1 million tons in 2002 to be 92.8 million
tons in 2005.
2. Indonesia coal markets are mainly in Asia-Pacific
countries. In 2005, around 85 % of its coal exports
went to Asian countries, including around 16 % of
coal exports went to some of ASEAN countries
(Malaysia, Singapore, Thailand and Philippine), and
the rest to European countries, Australia-America and
other countries.
 COAL DOMESTIC CONSUMPTION 2005-2025

Consumer 2004 2005 2010 2015 2020 2025 Remarks

( R)
Electricity growth
1. Electricity 23.0 26.2 49.2 74.8 119.2 156.5 7%
In average 1 ton coal
= 6.6. ton cement
2. Cement 5.5 6.5 10.0 11.00 13.0 17.0 resulted

3. Metalirgy industry
and Pulp peper 1.3 1.5 7.0 10.0 11.0 12.0

4. Small Industries 0.02 1.0 5.0 7.0 9.0 10.0 Direct Use+ briquette
(textile, briect
burning
roof/llimstone, etc)

UBC Product for

5. UBC - - 1.7 8.5 17.0 25.5 export

6. Liquefaction - - 2.0 10.8 27.0 37.8

Total 29,82 35.2 74.9 122.1 196.2 258.8

 STATUS of Coal Contract of Work (CCoW)
(As December 2005)

Stage

Type of Enterprises GS EXPL FS CONST PROD Sub Total Termination Total

Coal Contract of Work

GEN. I (1981-1990) - - - - 10 10 1 11

GEN. II (1994) - 1 1 2 8 12 6 18

GEN. III (1997-2000) 1 22 23 4 10 60 54 114

Total 1 23 24 6 28 82 61 143
The Major Coal Mine (CCOW) in Indonesia
 INDONESIAN COAL PRODUCTION
YEAR 2000- 2004

140,000.00

120,000.00

100,000.00
Thousand tons

80,000.00

60,000.00

40,000.00

20,000.00

0.00
2000 2001 2002 2003 2004

MA (STATE OWNED & PRIVATE) CCOW (GEN I, II, III) TOTAL

 CURRENT PERFORMANCE OF COAL INDUSTRY
AND FUTURE PROJECTION*

350
Domestic 300
300 Export
260
Production
250
215
M ill Ton

200 173
150 150
150 132
121 128 135
107
93 97
100
62 65
46
37
50 25 32
9 15

0
1994 1998 2004 2008 2012 2016 2020
Year

Remarks:
•Based On NCP and Blueprint Draft of National Development of Energy Industry
•Growth Rate of Export < Growth Rate for Domestic use
 INDONESIA COAL FLOW
Export

Export
SU
M
AT

KALIMANTAN
Export
RA

IRIAN JAYA

SULAWESI
Export
JAVA

Coal Flow
Coal Fired Power Plant
 INDONESIA’S COMPARATIVE ADVANTAGES
FOR INVESTMENT ON COAL

„ Indonesian Coal is generally environmental friendly; low

ash, low sulphur

„ Emerging domestic and International market on coal

„ Demographically - good for supply to Asia Pacific Region

„ At present, Indonesia economically and politically stable

 INVESTMENT OPPORTUNITY

• Low Rank Coal Development (Upgrading Brown Coal, Coal Liquefaction and
Mine Mouth Power Plant) in Central and Southern Part of Sumatra and East
Kalimantan

• Development of Integrated Coal Transportation System to link between coal

mines and terminals, which are located in the southern part of Sumatra, and
the whole area of Kalimantan

• Enhancing Coal Bed Methane and Underground Coal Gasification

Technology is very viable to be developed in many coal area

• Joint venture and strategic alliances with existing mining companies on coal
mining development
 TARGET OF INDONESIAN PRIMARY ENERGY MIX 2025*)

Coal contribution to electricity (2003)

Hydro Geothermal
7.20% 5.00% Oil
Primary Energy Mix 2025
17.50%
(Optimization Scenario)

Microhydro 0.216%

Natural gas Biofuel 1.335%

Coal
16.60% 32.7%
Solar 0.020%
Hydro
Wind 0.028%
2.4%
Coal
46.00% Geothermal Fuel cell 0.000%
3.8%

Others Biomass 0.766%

4.4%

Primary Energy Mix (2003) Gas

30.6%
Nuclear 1.993%
Coal
14.1% Oil
26.2%
Hydro
Gas 3.4%
26.5% Geothermal
1.4%

Other NRE
0.2%

Oil
54.4%

*) Based on Blueprint Draft of National Development Of Energy Industry, 2005

 Coal Terminal and Capacity
(Max vessel Capacity in DWT)
Tanjung Redep* 5.000
Tanjung Bara 200.000
B l o r o* 8.000
Loa Tebu* 8.000
Balikpapan 60.000
Tanah Merah 20.000
SU
M
AT

KALIMANTAN
R
A

IRIAN JAYA

SULAWESI
JAVA
North Pulau Laut 150.000

Tarahan 40.000 IBT – 70.000

Sembilang* 7.500
Pulau Baai 35.000
Air Tawar* 7.500
Kertapati 10.000
Banjarmasin* 10.000
Teluk Bayur 35.000
South Pulau Laut 200.000
* River Terminal S a t u i* 5.000
Kelanis* 10.000
 THE EXISTING INDONESIAN COAL TERMINALS

Max. Vessel Size Throughput Total Capacity

Port and Region Operator Start
(DMT) Capacity (000 ton) (Mt)
1. Sumatera

Kertapati PTBA 1962 7,000 400 1.5

Tarahan PTBA 1988 40,000 3,100 6
Teluk Bayur PTBA 1991 40,000 900 2
Pulau Bai Harbour Authority 1985 35,000 2,000 2.3

2. Kalimantan

Tanjung Bara PT KPC 1991 180,000 5,000 15

Tanah Merah PT Kideco 1992 60,000 2,600 2.3
Pulau Laut Utara PT BTI 1994 150,000 5,000 5.5
Balikpapan PT BCT 1995 60,000 5,000 3
Tanjung Redep PT Berau Coal 5,000 750 2
Beloro PT MHU 8,000 1,350 2,5 - 3,0
Loa Tebu PT Tanito Harum 8,000 6,300 1.7
Tanjung Pemancingan PT Arutmin 60,000 5,000 -
Sembilang PT Arutmin 7,500 1,000 -
Air Tawar PT Arutmin 7,500 1,800 -
Satui PT Arutmin 5,000 1,500 2
Banjarmasin Harbour Authority 5,000 - -
Kelanis PT Adaro 8,000 1,700 3.5
Bontang PT Indominco 150,000 5,000 7.5
 INVESTMENT OPPORTUNITY ON COAL DEVELOPMENT
(selected companies suitable for UBC and Liquafaction Project)

PTBA PT Bumi Laksana PT Arutmin Indonesia PT Berau coal

(Resource: 1,340 Mt Perkasa (Resource: 724 Mt) (Resouce : 1,130 Mt
CV 4650 kcal/kg) (Resource: 521 Mt) CV 5000 kcal/kg CV:5475 kcal/kg
CV 5305 kcal/kg

PTBA
(Resource:3,750 Mt)
CV 5825 kcal/kg

PT Astaka Dodol PT Bara Mutiara Prima

(Resource: 429 Mt) (Resource 428 Mt
CV 5313 kcal/kg CV 5312 kcal/kg
 INVESTMENT OPPORTUNITY ON
SUMATRA COAL TRANSPORTATION SYSTEM *)

Scheme of Railway Coal Transportation

Tanjung Api Api

◎

New Railway
To Tanjung Api-api (80 km)

Lubklinggau
305km
Kertapati
◎ ◎

Muaran Enim Simpang

◎ ◎ ◎
Prabumulih
Lahat Increasing Railway Capacity
Study Area of PKP2B Tanjung Enim ◎
By Siding

400km

411km
◎
Tarahan

*) Based On Integrated Study on South Sumatra Coal

Transportation System, IEEJ-DOC, 1998
 INVESTMENT OPPORTUNITY ON
SOUTH SUMATRA COAL TRANSPORTATION DEVELOPMENT
Jambi Muntok
Coal Terminal

Jambi Province
Propinsi Sumsel

Tj. Api Api P. Bangka

Canal Port Canal

Palembang
New Railway KERTAPATI

Prabumulih
Muara Enim
Bengkulu Lahat TJ. ENIM MINE

Baturaja

Lampung Province

Tarahan
Coal Terminal
Tg.
Tg. Enim - Tg.
Tg. Api-
Api-api : ( 250 Km)
Bandarlampung
Tg. Enim - Muntok *)
Tg. : ( 410 Km)
Tg.
Tg. Enim - Kertapati : (180 Km)
Tg. Enim - Tarahan *)
Tg. : (420 Km)
JAKARTA
*) under negotiation between PTBA and Chinese Company
 INVESTMENT OPPORTUNITY ON
KALIMANTAN COAL TRANSPORTATION (RAILWAY AND TERMINAL)*

* Based on Coal Transportation Study, IEEJ-DMCE, 2000-2001

• Coal Mines that need railway in 2020: 38 Coal mines of CCOW

• Railway coal transportation system will feasible for 2020 to linkage coal deposits and terminals located in northern part
East Kalimantan, Central Kalimantan, and southern part South Kalimantan (Study Results, calculated by LP Model)
 INVESTMENT OPPORTUNITY FOR COAL DEVELOPMENT
(List of Companies on Exploration - Construction Stages)
Calorific Sulfur Content
Ash Content (adb)
RESOURCES (Million Tones) Value (adb)

PROVINCE STAGE (adb)

INDICATE
MEASURED TOTAL
D

RIAU 800.72 539.91 1340.63

1. PT BUKIT ASAM (KP) Exploration 800.72 539.91 1340.63 4650 0.27 10

SOUTH SUMATRA 4615.47 4129.7 8897.29

2. PT BUKIT ASAM (KP) Exploration 2141.34 1609.12 3750.37 4700 - 6950 0.33 – 0.90 5.67 – 9.00

3. PT ASTAKA DODOL (PKP2B) Exploration 143.2 286.4 429.6 5241-5388 0.19 - 0.24 6.04-7.60

4. PT BARA MUTIARA PRIMA (PKP2B) Exploration 84.1 344.49 428.59 5162 - 5463 0.42 - 1.38 3.09 - 5.00

5. PT BATURONA ADIMULYA (PKP2B) Exploration 53.59 46. 63 100.22 5.287 0.17 - 2.07 1.6 - 24.3

6. PT PENDOPO ENERGI BATUBARA (PKP2B) Feasibility Study 1500.94 1675.54 3176.48 3740 - 5370 0.1 - 0.5 4.10 - 6.50

7. PT SELOARGO DEDALI (PKP2B) Exploration 51.99 50.37 102.36 4180 - 5250 0.20 - 0.70 3.1 - 20.2

8. PT TRIMATA COAL PERKASA (PKP2B) Feasibility Study 38.54 77.08 115.62 4303 - 5345 0.20 - 2.27 1.28 - 8.36

9. PT TRIMATA BENUA (PKP2B) Feasibility Study 43.35 86.7 130.05 4600 - 5310 0.2 - 0.7 1.5 - 4.0

10. PT TRIARYANI (KP) Exploration 664 664 4650 - 6750 0.31 – 0.92 5.50 – 9.12

EAST KALIMANTAN 104.47 883.57 988.04

11. PT DELMA MINING COORPERATION (PKP2B) Exploration 20.28 166.92 187.2 3145 - 4595 0.12 - 1.94 0.99 - 24.02

12. PT INTEREX SACRA RAYA (PKP2B) Feasibility Study 25.57 137.7 163.27 5325 - 7126 0.78 12.38 - 30.0

13. PT PERKASA INAKAKERTA (PKP2B) Construction 58.62 57.55 116.17 5252 - 5880 1.03 – 3.32 1.35 – 9.09

14. PT BUMI LAKSANA PERKASA (PKP2B) Exploration 521.4 521.4 5305 1.45 2.72

CENTRAL KALIMANTAN 134.35 460.09 594.44

Exploration/Fea
15. BHP BILLITON GROUP (7 Companies) (PKP2B) sibilirty Study 60.7 351 411.7 5030 - 8283 0.30 – 2.59 2.7 – 18.1

16. PT BATUBARA DUARIBU ABADI (PKP2B) Feasibility Study 73.65 109.09 182.74 5242 - 7685 0.19 - 2.74 0.6 - 8.4

17. PT SUPRABARI MAPANINDO M. (PKP2B) Exploration 63.39 56.86 120.25 5021 – 7454 0.36 – 3.11 6.5 – 29.09

TOTAL 5655.01 6013.27 11820.4

KP : Coal Concession; PKP2B : Coal Contract of Work;
BHP Billiton Group: PT Maruwai Coal, PT Lahai Coal, PT Kalteng Coal, PT Ratah Coal, PT Pari Coal, PT Sumber Barito Coal, PT Juloi Coal
 Indonesia CBM Resources (TCF)

Completeable High CBM Resources

Target Coal Avg
Basin Province Coal Graded Complet Concen
Formation Rank Depth
Thickness Area able tration

(m) (R0 %) (m) (Km2) (Tcf) (Bcf/mi2)

1 S. Sumatera Sumatera M. Enim 37 0,47 762 7.350 183.0 24.9

2 Barito Kalimantan Wakukin 28 0,45 915 6.330 101.6 16.0
3 Kutei Kalimantan Prangat 21 0,50 915 6.100 80.4 13.2
4 C. Sumatera Sumatera Petani 15 0,40 762 5.150 52.5 10.2
5 N. Tarakan Kalimantan Tabul 15 0,45 701 2.734 17.5 6.4
6 Berau Kalimantan Latih 24 0,45 671 780 8.4 10.8
7 Ombilin Sumatera Sawaht 24 0,80 762 47 0.5 10.7
Pasir /
8 Kalimantan Warukin 15 0,45 701 385 3.0 7.9
Asem
9 NW Java Java T. Akar 6 0,70 1524 100 0.8 7.6
10 Sulawesi Sulawesi Toraja 6 0,55 610 500 2.0 4.0
11 Bengkulu Sumatera Lemau 12 0,40 610 772 3.6 4.7
Total 30.248 453.3 15.0

(Stevens and Hadiyanto, 2004)

PRINCIPLE BASIC OF NEW LAW OF MINERAL AND COAL MINING

¾ One type license or mining permit, no more

contract applied between mining company and
the government;

¾ Foreign mining company will be taken contract

with the State Owned Mining Company;

¾ Simplification of Licensing Permit; Exploration

and Exploitation;

¾ Determination of mining areas through bidding

and self reservation;

¾ Community development is focused for local

people welfare;
 CLOSING REMARKS
„ To maintain the coal export needs capacity and
volume, important efforts that should be conducted to
push the increase of foreign direct investment are:
– Improving coal mineable reserve
– Utilizing LRC
– Developing Infrastructure

„ For the time being Indonesia still need big investment

to develop the potency on coal

„ Based on all of have been mentioned above, there are

many opportunities for foreign parties to participate the
opportunities.