Coal reserves in Indonesia are estimated to be about 445 million tons, of which probable reserves from unexplored areas are estimated to be 365 million tons. The coal ranks from subbituminous to bituminous coal of which about one third may be considered recoverable. Reserves of brown coal and lignites are estimated to be several billion tons.

The amount of total reserves is based on exploration carried out during three periods, i.e., prewar

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period (1890-1941), rehabilitation period (1950-1965), and the five-year development plan period (1969 to present).

The objectives of exploration of coal in the prewar period were to gather data for the development of the coal mines and their future expansion. During 1950 to 1965 these activities were influenced by a possible development of an iron and steel project.

Since 1969 coal exploration was conducted within the framework of the five-year development plan of the government. Studies were being made to utilize the coal from two major mines in Sumatra as fuel in electric power plants and in industry.

The pattern of the Indonesian coal market in the prewar period was for export and the use as fuel in industries, railroad, and shipping. Since 1950 these markets have been gradually declining because petroleum was considered to be more suitable as fuel than coal. The decline of these markets affects seriously the coal industry in Indonesia.

At present the coal industry will be revived due to the government policy to utilize coal as effectively as possible in any uses previously fueled by petroleum, mainly electric-generating power plants.

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