Total coal resources in Indonesia is estimated at 105 billion tons, of which coal reserves estimated 21 billion tons. major coal mines located in South Sumatra, East Kalimantan and South Kalimantan. coal production increased by 16% per year for 5 years. Currently, 75% of total coal production is exported, mainly to Japan, Taiwan, South Korea and Europe.

Most of the export coal quality sub-bituminous coal and bituminous, while the low rank coal is mainly used for domestic market. "Indonesia will continue to allow the dual role of coal, namely as a source of state revenue, as well as to meet domestic energy needs.

Utilization of coal as a fuel will continue to be pursued government to reduce dependence on petroleum. In the aspect of regulation, the Government has issued Decree No. 34 on the Minister of Mineral and Coal Supply Priority Needs of the Interior. As per this decision, Domestic Market Obligation (DMO) is mandatory for all coal mining companies.

The government has set the sales price of coal contained in the Ministerial Regulation No. 17/2010, concerning the procedures to establish a benchmark price and the sale of minerals and coal. With the publication of this rule is expected to provide assurance of reference for producers and consumers of coal, as well as state revenue optimizing price for coal producers and business players in Indonesia. Associated with increased added value of coal, in Law No. 04/2009 mandates that all the minerals and coal must be processed in Indonesia.

Increasing the value added can be done by increasing the advance of other coal quality (upgrade) of low rank, liquefaction, and gasification. At this time, several private companies that have developed a process to improve the low rank coal. Several coal liquefaction and gasification projects are also under planning and evaluation