Coal demand and reserved of Indonesia

Posted by on Jun 23, 2013 in Uncategorized | 0 comments

Estimated coal reserves of Indonesia
Coal is one of the alternative energy options that is currently widely used by industries in the world. According to the International Energy Agency (2010), world coal consumption will grow by an average 2.6 percent per year between 2005?2015 and then slowed to an average of 1.7 percent per year during 2015?2030. Is Asia’s largest coal consumption is about 65.6 percent of world coal consumption. The construction of a power plant in the region to make this much?needed commodity in the region (World Coal Institute, 2008). This is what makes Asia the world’s biggest market coal. The high coal consumption caused by rising coal demand in Asian countries, such as Japan, India, Taiwan, South Korea, China, Hongkong, Thailand, and Malaysia.

The high demand for coal in Asia providing an attractive market prospects for exporters of coal. Indonesia is one of the exporters of coal which has an important role as a supplier of coal in the world market by 24 percent. Japan, India, South Korea, Taiwan, and China are the five biggest export destination countries of Indonesian coal. The amount of coal demand from Japan, India, South Korea, and China from year to year is not stable because of the volume and value fluctuated. This condition is felt not maximized because Indonesia still has a tremendous opportunity to become a major exporter of coal in the world.

Estimated coal reserves of Indonesia coal production capacity is 200 million tons and coal reserves can be estimated that Indonesia is able to meet the production of up to 93 years. In 2009, Indonesia’s coal resources calculated at 104.76 billion tonnes. This suggests that increased coal resources with an average growth of nearly 6 percent per year in which the previous two years of coal resources only reached 93.4 billion tonnes. Indonesia’s coal reserves are spread quite widely in various regions in Indonesia, namely in the areas of Sumatra, Kalimantan, Sulawesi, Java, Maluku, and Papua. Based on the reports of the Geological Resource Center Directorate of Mineral, Coal and Geothermal as of January 2009, the Indonesian coal amounted to 104,756.84 million tons. The coal reserves are spread quite widely in different regions of the reserves that can be mined at 18779.93 million tons. Resources and coal reserves are located mostly in the Indonesian island of Sumatra and Borneo.

Only 3.8 percent of Indonesia’s coal resources are scattered in other major islands. Largest coal resources located in the South Sumatra province of 47,085.08 million tons and East Kalimantan at 37,537.98 million tons. While the largest coal reserves located in South Sumatra that is equal to 9,542.01 million tonnes and East Kalimantan of 3633.04 million tonnes. Based on these explanations can be concluded that Indonesia has the resources and reserves of coal is so abundant. Under Indonesian Energy Outlook 2010, the last eight years in Indonesian coal consumption increased by an average growth of more than 15 percent per year. Most of the consumption of coal is used by power plants. The main consumers of coal fuel in Indonesia are PLN. The company states consume more than 80 percent of domestic coal supply, or about 34 million tons in 2010, while the rest is consumed by domestic industries, such as steel and cement.

The use of coal in the industrial sector industries includes cement and ceramics, pulp and paper, iron and steel, and other industries, including textiles and food. Needs of the coal industry in the country will continue to increase from year to year, the cement industry is a significant consumer of coal.

Demand for coal in the cement industry in 2008 reached about 6.8 million tons. In the industries of iron and steel, pulp and paper, and others include textile mills, food, tile, brick, and manufacturing, the use of coal is used as a source of heat energy and fuel power plants. The increasing use of coal at these plants is estimated to be caused by rising oil prices and inadequate electricity (Petromindo, 2009) Indonesian coal exports to increase each year with positive growth. The highest growth was in 2001 that is equal to 54 percent of the total increase in exports of
23.13 million tons. Since then the Indonesian coal exports continued to increase from year to year until in 2008 exports reached 140.52 million tons of coal. Then rose by 14.8 percent in 2009 with exports reaching 161.34 million tons. Most of Indonesia’s coal export destinations are countries in Asia such as Japan, China,
South Korea, India, Taiwan, Malaysia, Thailand, and the Philippines, while the rest is exported to countries in Europe such as Spain, Italy, Netherlands, Switzerland, and UK and the Asia Pacific region, namely the United States. Japan is a destination that major Indonesian coal exports. Indonesian coal exports to Japan are expected to increase steadily after the agreement Economic Partnership Agreement (EPA) which includes cooperation to increase the demand for coal by the restrictions on China’s exports to Japan.

This happens because China will prioritize the use of coal for the needs of infrastructure development in the country. So that the greater the role of Indonesian coal exports due to increasing. Increased exports of Indonesian coal Indonesian coal industry demonstrated the ability to meet the rapid growth in coal demand in importing countries is supported by the existence of transport capacity and adequate ports (Petromindo, 2009). Until now the world coal demand continues to increase significantly from year to year. In addition to the price boom fueled by coal, it is also influenced by the increasing number of overseas power plant that uses coal as fuel. The high demand with world prices continues to increase the incentive for domestic coal exporters to continue to increase its exports

Leave a Reply