Multimedia Mania/abacus-multimedia-mania.iso/dp/0024/00243.txt

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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 by PT Aneka Tambang.

     During the last few years its production suffered a decline as Japan,
the sole buyer country of Indonesia's bauxite production, tends to import
aluminum. Unfortunately there is no company in the country yet which processes
bauxite into alumina. The production of bauxite which in fiscal year 1987/88
amounted to 654.2 thousand tons, dropped to 514.1 thousand tons in fiscal year
1988/1989. In the corresponding years the exports of bauxite were 686.4
thousand tons and 703.0 thousand tons respectively.

GOLD

     The gold and silver mines in Cikotok, West Java, are exploited by the
gold mining unit of PT Aneka Tambang. Gold and silver are also by-products of
Freeport Indonesia Inc., which exploits copper in Tembaga Pura, Irian Jaya.
Additional gold and silver explorations are also made by smallholders in
certain regions in Kalimantan, using traditional equipment.

     During the last few years interests of private companies to exploit gold
deposit rose significantly: 103 joint venture working contracts have been
signed, involving 75 national private companies and 38 foreign companies. This
surge ascribes to among other things the lifting of gold export prohibition in
1986 and the rise of gold price in the world market.

     In fiscal year 1988/89 gold production totalled 5,050 kg, an increase of
1,805% compared to that of 1983/84 which amounted to 265.1 kg.

COPPER

     Copper deposit is found in Tembaga Pura, Irian Jaya, and is exploited by
Freeport Indonesia Inc. The copper production is entirely exported.

     Production of copper tends to rise constantly. In fiscal year 1983/1984
the production and exports of copper were 199.7 thousand tons and 202.8
thousand tons respectively, which grew significantly to 302.7 thousand tons
and 290.5 thousand tons respectively in fiscal year 1988/1989.

NON-FUEL MINERALS

     Categorized into class C of the non-strategic and -vital mineral
resources, the non-fuel minerals in Indonesia make an important contribution
to the economy.

     Non-fuel minerals are mainly exploited by regional government companies
and smallholders' companies as well as state-owned companies, and used mainly
for industrial raw materials and for building constructions materials.

     The tonnage extracted of some of the main non-fuel minerals produced in
Indonesia is given on the table below:

[See Table 22.: Production of Some of the Main Non-Fuel Minerals in tons]

ENERGY

     Development in the field of energy also gets high priority. Policies in
this field aim at efforts to find energy resources, diversify power energy
resources, manage and utilize energy economically and efficiently and
determine sorts of energies appropriate to be used in each sector of
development.

     The development and utilization of coal, water and geothermal as
generators of electricity continue to be improved and enhanced. Besides, the
use of energy resources such as micro-hydropower, solar energy, biogas,
biomass and wind power, maintains to be encouraged and promoted, especially in
rural areas.

     The use of commercial energies tends to increase continuously; if in
fiscal year 1984/85 the consumption of energy totalled 227.6 million barrel
oil equivalent, the figure rose to 285.7 million barrels oil equivalent, in
fiscal year 1988/89 which is an increase of 6.38% annually.

     In the meantime, the proportion of non-oil energies also saw a meaningful
increase from 27.07% to 35.49%. The use of coal grew from 0.8% to 6.12%, that
of hydropower rose from 6.15% to 8.19%, and geothermal from 0.18% to 0.56%.
On the contrary, the use of oil declined from 72.93% to 64.51%.

     Studies on the availability of potential of energies suitable for rural
areas are being conducted seriously through cooperations involving higher
learning institutions to carry out studies on a productive system of
utilization and the use of energy resources in rural areas.

     Campaigns, guidances, studies and trainings as well as other
arrangements are constantly conducted in the context to save energies. Studies
on energy potentials and follow up measures to save energies have also been
done in various industries such as textile, cement, plywood. etc.

ELECTRICITY

     The state-owned electric company is responsible to promote the
development and maintenance of an efficient, coordinated and economical system
of electricity supply.

     The policy on the implementation of electricity development is always
accorded with policies on the implementation of development in other related
fields, such as the general energy policy, regional development policy, etc.,
while in line with the general energy policy, the policy of electricity
development stresses on the use of electric generators utilizing non-oil
energy such as coal, water, gas and geothermal.

     Meanwhile, the Government is also committed to continue the development
of rural electricity as it has proved successful in stimulating social and
economic undertakings in rural areas. In fiscal year 1988/1989 the villages
which had already enjoyed electricity totalled 19,044 out of the 66,594
throughout the country, whereas in fiscal year 1983/84 only 7,637 villages had
the facility. In the meantime, up to 1988/89 the number of consumers amounted
to 3,425,204.

     Development of electric power capacity has also been encouraging. During
fiscal year 1988/1989, a number of electric power plants with a total
capacity of 1,635.95 MW, were completed. They are Mrica hydro-power electric
plant, Sengguruh hydro-power electric plant, Cirata hydro-power electric
plant, Medan gas-driven power station, Gresik steam-driven power station,
Suralaya steam-driven power station, Wadaslintang hydro-electric power plant
and Kombin oil-generated power station. In addition, there are also a number
of new diesel plants just recently installed in the urban and rural areas,
with a total capacity of 110.65 MW. The construction of a 606.66 km
transmission network and eight sub-stations with a total capacity of 3,952.5
MVA has also been completed and their distribution network spread over the
urban and rural areas. The expansion work comprised of medium tension network
of 5,037.27 km and low tension networks of 4,014.75 km, in addition to the
construction of 4,628 distribution sub-stations with a total capacity of 321.6
MVA.

     The above mentioned physical development has indeed brought on a
significant rise of electricity supply. The output capacity in fiscal year
1988/1989 totalled 25,622,755 MWh which is an increase of 14.9% compared to
the 22,305,912 MWh of the previous fiscal year. Meanwhile, the sales of
electricity rose to 19,990,700 MWh in fiscal year 1988/89 which is 17.1% of
the 17,076,800 MWh in fiscal year 1987/88. The installed connecting capacity
grew by 18.5%  from 10,710.7 MVA in fiscal year 1987/88 to 12,695.6 MVA in
fiscal year 1988/1989, while the number of consumers increased from 8,203,349
to 9,250,095 which is an addition of 12.8%.

CITY GAS

     The policy of development on the distribution of city gas is more
directed towards the expansion of city gas network. In the context of
augmenting the supply and utilization of gas for cities in Java Island which
have gas networks, and those in other regions which are prospective for the
development of city gas installations, the main target in expanding city gas
networks is the large number of consumers to minimize unit cost.

     At present, natural gas is only consumed in Jakarta, Bogor, Medan and
Cirebon, while the kind manufactured from coal or petroleum is used in the
cities of Bandung, Surabaya and Semarang. A feasibility-study is being
conducted for the possibility to consume natural gas instead of manufactured
gas in Bandung and Surabaya.

     The physical development of city gas still concerns upgradings of the
installed capacity, covering transmission pipelines (high pressure) and
distribution pipelines (low pressure).

     In the period 1983/1984 to 1988/1989, the gas city installed capacity
grew at an annual average of 5.7%. In fiscal year 1988/89 alone the daily
installed capacity managed by state-owned gas company, Perum Gas Negara,
totalled 3,692,312 thousand cubic metres compared to 2,831,440 thousand cubic
metres in 1983/84. In the meantime the distribution network has reached
1,377.16 km.

     The production of city gas shows a promising increase; if in fiscal year
1987/1988 it amounted to 202,331.19 thousand cubic metres, in fiscal year
1988/1989 it rose to 247,415.60 thousand cubic metres, which is about  22.3%.
The rise of production was followed by the increase of consumption. In fiscal
year 1988/89 223,861.40 thousand cubic metres was consumed an increase of
24.4% compared to that of the previous fiscal year.