Indonesia is set to consolidate its coal mining sector after reviewing local mines, which are not certified as clean and clear.

Said to be applicable only to the IUPs, the review excludes larger and older-generation firms with so-called contracts of work, Reuters reported.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

At the 21st Coaltrans Asia conference in Bali, Indonesia, Mining and Energy Minister Sudirman said the country plans to withdraw licenses of more than 4,000 that have not met certain standards.

Sudirman told Platts: "There are more than 10,000 mines, which are IUPs or Izin Usaha Pertambangan [producers who are not directly under the government], and nearly 40% of them do not have clean and clear certification."

"There are more than 10,000 mines and nearly 40% of them do not have clean and clear certification."

Indonesia exports an estimated $2bn of coal monthly and intends to gain more revenue from the mining sector.

See Also:

Indonesian Coal Mining Association chairman Pandu Sjahrir did not mention any timeframe for the consolidation process.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to Sudirman, around 6,000 of the newer mining licenses from the total 10,100 issued had been certified as complying with government rules.

The minister added that there are currently 960 coal firms at production stage.

Said to be IUP permit holders, around 900 of them contribute approximately 80 million tonnes.

The investment coordinating board (BKPM) will take over the licencing from the ministry in 2015.