Jakarta - Indonesian coal production per year has increased by 16 percent over the last five years. Currently, 75 percent of total coal production is exported abroad, mainly to Japan, Taiwan, South Korea and Europe.

Most of the export coal quality sub-bituminous coal and bituminous coal, while low rank coal used primarily for the domestic market.

"Indonesia will continue to enable the dual role of coal, namely as a source of state revenue, as well as to meet domestic energy needs," said Minister of Energy and Mineral Resources Saleh Darwin as quoted by the official website of the Ministry of Energy and Mineral Resources in Jakarta, Tuesday (31/05/2011).

The utilization of coal as fuel will keep the government sought to reduce dependence on petroleum. In the aspect of regulation, the Government has issued Decree No. 34 of Minister of Mineral and Coal Supply Priority Needs of the Interior. According this decision, Domestic Market Obligation (DMO) is mandatory for all coal mining companies.

"Obligations DMO actually also expressed in the Coal Mining (Timbara). The company can export part of production after domestic needs are met, "he added.

The government has set the sales price of coal contained in the Ministerial Regulation No. 17/2010, concerning the procedure to establish a benchmark price and the sale of minerals and coal. With the publication of this rule is expected to provide certainty of reference for producers and consumers of coal, and to optimize revenue for the producer price of coal and do business in Indonesia.

Related to the increase in value-added coal, in Law No. 04/2009 mandates that all minerals and coal must be processed in Indonesia. Increasing the value added can be done other anatar by improving the quality of coal (upgrade) low rank, liquefaction and gasification.

At this time, several private companies that have developed a process to improve the low rank coal. Some coal liquefaction and gasification projects are also under planning and evaluation.

The total coal resources in Indonesia is estimated at 105 billion tons, of which coal reserves estimated 21 billion tons. Major coal mine located in South Sumatra, East Kalimantan and South Kalimantan.