Indonesia’s high-calorie coal reserves face critical depletion

Jakarta (VNA) – Indonesia’s Ministry of Energy and Mineral Resources reported that the archipelago’s total high-calorie coal reserves are depleting.

Director of Coal Business Development at the ministry Surya Herjuna said Indonesia now holds some 31 billion tonnes from an estimated total resource base of 97 billion tonnes. However, merely 5% of the country's coal reserves consist of high-calorie coal containing 6,000 kilocalories per gross as received (kcal/GAR). Coal at 5,000 kcal/GAR represents just 8%, while coal at 4,200 kcal/GAR makes up 73% of total deposits.

The Indonesian government is encouraging coal exploration activities as part of the efforts to address the high-calorie coal crisis. Besides, it is joining hands with private enterprises to develop future plans amidst the depletion.

Despite the challenges, the government hopes to maintain the economic viability of lower-calorie coal reserves – the 4,200 kcal/GAR grade coal having served numerous industrial sectors, Herjuna said.

Meanwhile, the Indonesian Mining Association (IMA) expressed confidence in the coal sector's future prospects although part of the additional steam power plant (PLTU) capacity will be reduced over the next decade.

IMA Chief Executive Hendra Sinadia said both export and domestic coal demand remain high, elaborating domestic coal consumption, currently accounting for 25% of total production, could increase to 30%./.

VNA