Data Consult - Multi-Client Studies

Comprehensive Report

Indonesian Coal Mining Industry

Challenges and Prospects

June 2008

Coal mining industry in Indonesia has been more attractive for major coal users in the world such as China, India and Japan. Meanwhile, Indonesia is considering restriction on coal exports to guarantee domestic supply especially . The government has laucnhed a crash program in the electricity sector to build new coal-fired power plants with a total capacity of 10,000 megawatts. The program, which is to be comleted before 2010 will need large supply of coal. The government’s decision has worried coal importing countries as they may no longer rely on Indonesia to guarantee coal supply.

The program to be carried out by state electricity company PLN is to prevent shortage in power supply in the country. The soaring prices of crude oil has also prompted the launching of the program especially as the country’ has become a net importer of crude oil. The crash program has caused leapfrogging increase in coal requirement in the country. In 2010, the cuntry’s coal production is predicted to reach 260 million tons of which 170 million tons would be exported.

Indonesia which has been the largets supplier of coal to the world market, exported 130 million tons of coal in 2007 or 25% of the world supply. Majpr coal consuming countries, therefore, are seeking not only to secure long term supply contract but to acquire coal mining companies in the country to guarantee supply.

Meanwhile, brisker activities in the mining sector have contributed to increase in demand for heavy equipment including coal transport equipment. There has also been growing difficulty in securing ships, and barges to facilitate coal exports.

This report presents details about the prospects of coal mining industry and investment in the industry in the country with growing contribution of coal to the world’s energy requirment.

Enclosed, please find the outline of the report and the ORDER FORM. This is available at a price of US$ 850,- excluding a 10% VAT and a cost of delivery. Please fill out the ORDER FORM and fax it to PT DATA CONSULT or, for RUSH ORDER, contact us at phones ; 3904711, 3266 3081, Hp : 0813 10270901 or fax us at 3901877 or by e-mail.

Sincerelly yours,

Giri Buana

Marketing manager