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$Unique_ID{bob00243}
$Pretitle{}
$Title{Indonesia
Mining and Energy}
$Subtitle{}
$Author{Department of Information Republic of Indonesia}
$Affiliation{Embassy of Indonesia, Washington DC}
$Subject{year
fiscal
gas
production
thousand
tons
development
oil
energy
compared
see
tables
}
$Date{1990}
$Log{See Table 22.*0024301.tab
}
Title: Indonesia
Book: Indonesia 1990 an Official Handbook
Author: Department of Information Republic of Indonesia
Affiliation: Embassy of Indonesia, Washington DC
Date: 1990
Mining and Energy
Policies adopted in this sector aim at continuing and further advance
efforts on making inventory, mapping, exploration and exploitation of mineral
deposits and energies by utilizing efficient technology to augment production
and exports of the resources. Parallel with this, the mining technology is
continuously promoted and advanced, while the research and processing of
mineral deposits are constantly encouraged. In line with this, education and
training is also persistently promoted and ameliorated in order to meet the
need for experts and skilled workers.
The development of mining is also directed towards the expansion of
employment opportunities, diversification of products and augmentation of the
supply of raw materials for domestic industries.
The private small-scale mining undertakings will also be further
encouraged through improvement of procedures, provision of guidance on mining
business management, and development of cooperatives in this field.
This sector remains one of the country's major income earners. Its
notable achievement during the last five years was earmarked by the full
operation of oil refineries in Balikpapan (East Kalimantan) and Cilacap
(Central Java) together with the completion of a hydrocracker in Dumai (Riau).
As the result, since 1986 the country has not had to refine its crude oil
production abroad any more and has been no more depending on oil imports.
Meanwhile, expansions of LNG (Liquefied Natural Gas) refineries in Arun
(Aceh) and Badak (East Kalimantan) have been completed of which the production
will rise in the future.
In other mining productions, gold and coal experienced a substantial
increase. Coal will be used extensively in the coming years to substitute oil.
OIL
As the result of the decrease of oil price which in turn brought on a
slow-down in oil exploration, the country's oil production during fiscal year
1988/89 dropped by 2.17% compared to that of the previous fiscal year namely
from 507.95 million barrels to 496.92 million barrels. In the meantime,
drilling activities during the first four years of the Fourth Five-Year
Development Plan went down, and only in the final year of the said period the
situation changed with the signing of 9 new contracts of exploration by the
state-run oil company Pertamina with some foreign contractors. These new
contracts are hoped to be able to revive exploration activities in the years
to come. Up to now there are 73 viable oil contracts comprising 2 joint
production, 2 technical assistance contracts and 69 production-sharing
contracts.
Exports of crude oil and condensation during fiscal year 1988/89 totalled
274.4 million barrels or 0.36% lower compared to that of the previous fiscal
year and 22.9% lesser than that of 1983/84. Meanwhile, exports of oil products
during the corresponding fiscal year reached 61.1 million barrels, or 7.5%
lower than that of fiscal year 1987/88, but 7% higher than that of 1983/84.
Sales for domestic consumption during 1988/89 totalled 171,162 thousand
barrels, which is 3.7% higher compared to that of 1987/88. In the meantime,
the sales of non-oil products such as lubricant, liquefied petroleum gas
(LPG), asphalt and wax, also noted an encouraging increase. In addition, some
new by-products of oil such as methanol and purified terephthalic acid, have
been for the last few years entering the national as well as international
markets.
GAS
The continuous growing of gas consumption in recent years has brought gas
production to rise significantly. Apart from being substitute energy of fuel
oil for the Balikpapan refinery, Cibinong cement plant and Krakatau steel
factory for instance, gas is also used as the basic material for the
fertilizer industry.
Non-associated gas is used to produce liquefied natural gas (LNG), and
associated gas is exploited to become liquefied petroleum gas (LPG).
Gas production during fiscal year 1988/89 totalled 1,787 billion cubic
feet, or an increase of 2.9% compared to that of the previous year. In the
meantime, gas consumption during the corresponding fiscal year was 1,648
billion cubic feet, or a rise of 3.8% compared to that of the previous fiscal
year.
LNG production also indicates a rising tendency as result of the
increased production capacity of refineries on the one hand and the growing
demand on the other. A substantial rise occurred during fiscal year 1987/88,
namely 11.5% from 811,799.6 thousand MMBTU to 905,150 MMBTU. During fiscal
year 1988/1989, LNG production totalled 970,150 thousand MMBTU. Meanwhile, the
export of LNG during fiscal year 1988/1989 was recorded at 964,897 thousand
MMBTU, compared to 894,955 thousand MMBTU during the previous fiscal year. In
fiscal year 1988/1989 export of LPG noted a sharp increase of 176% from 518
thousand tons in fiscal year 1987/88 to 1,430.6 thousand tons. This was
attributed to the full operation of Bontang (East Kalimantan) and Arun (Aceh)
refineries.
COAL
The development of coal is primarily directed towards meeting the
domestic demands of oil-energy substitution, among others for steam-driven
power plant, cement industry, etc.
Coal deposits are found in Sumatra and Kalimantan, and exploited by two
state-owned companies and five private companies.
In fiscal year 1988/1989 the two state-owned companies produced 2,597.7
thousand tons, or a rise by 322.5% compared to that of fiscal year 1983/1984,
while the total output of those five companies was 5,195 thousand tons, making
the over-all coal production in fiscal year 1988/1989 to rise by 745.2%
compared to that of fiscal year 1983/1984.
Recent surveys found coal deposits in Aceh, Riau, West Sumatra, West
Kalimantan and Central Kalimantan. The country's coal reserve is estimated at
15,500 million cubic metres.
TIN
The fall of tin price in the world market and the difficulty to market
the country's tin production occurring since 1983 have affected the country's
tin production of which 95% was exported. Moreover, by the closing-down of the
London Metal Exchange (LME) in 1985, the Association of Tin Producing
Countries (ATPC) imposed a "supply rationalization" which according to the
first Supply Rationalization effective on March 1987 to February 29, 1988,
Indonesia was given a quota of 24,516 tons. Meanwhile, the country's tin
production in fiscal year 1988/1989 amounted to 28.9 thousand tons, or an
increase by 12% compared to that of the previous fiscal year.
NICKEL
By far nickel ore is found and exploited in Pomalaa (Southeast Sulawesi),
Gebe Island, Halmahera Islands (Maluku) and in Soroako (South Sulawesi).
Nickel ore found in Pomalaa and Gebe Island is exploited by state-owned
company PT Aneka Tambang. Part of its production is processed into
ferro-nickel and the remainder exported. Nickel ore found in Soroako is
processed into nickel-matte.
Production of nickel in fiscal year 1988/1989 totalled 1,881.6 thousand
tons, or a slight increase compared to that of the previous fiscal year
amounting to 1,782.1 thousand tons, of which 1,607.8 thousand tons were
exported. Production of ferro-nickel was 4,833.0 tons of which 4,700 tons were
exported. Production and exports of nickel-matte amounted to 30,216 tons and
28,820 tons respectively.
BAUXITE
Bauxite deposits, found in the islands of Bintan, Tembiling and Dendang
in the Province of Riau, are mined and processed