Industry sectors

Indonesia (a member of OPEC) plays an important role in the functioning of the global energy system. Is one of the largest producers of oil and gas in the world.

Indonesia’s energy system is based mainly on three basic natural resources: coal, oil and natural gas (about 80% of energy is obtained on the basis of the above-mentioned raw materials). Nearly 20% of energy is obtained from so-called renewable sources (hydro, geothermal, solar and biomass power plants). Natural gas reserves are estimated at 92.5 trillion cubic feet (tcf). Indonesia is also a significant producer of hard coal. The reserves of this mineral are estimated at 5.75 billion tons. The share of hydropower and geothermal energy in total energy production in Indonesia is calculated at nearly 20%. Indonesia has great potential for renewable energy production. The total potential is estimated at nearly 150,000 MW.

Most confirmed oil reserves are located onshore. The main deposits are located in Central Sumatra (Duri and Minas oil fields). On the other hand, the largest offshore shelf deposits are located in the north-west of Java, East Kalimantan and the Natuna sea. The quality of Indonesian oil varies greatly. Most of the raw material has a weight ratio between 22o and 37o, according to the American Petroleum Institute standard. The main = export species are Sumatra Light or Minas, with a ratio of 35o and a heavier species called Duri, with a ratio of 22o.

In the last two years, oil production, limited by OPEC limits, showed a downward trend. This was mainly due to the depletion of raw material in the area of ​​old deposits and the lack of new investments. Although the decline in production was partially stopped by extracting oil from new, small installations, Indonesia was forced to sign new contracts for the exploration of deposits. Indonesia has 8 refineries with a capacity of 992.745 barrels per day. The largest of them is Cilacap with a capacity of 348,000 barrels per day.

Most of the gas deposits are located in the Arun field in North Sumatra, Badak in East Kalimantan, small fields on the shelf near Java, West Irian and the largest oil field in Southeast Asia – Natuna D-Alpha. Most of the gas produced in Indonesia is intended for export, and the national distribution network is not well-developed.

Indonesia is one of the leading hard coal producers in the world. According to the estimates of the Ministry of Mining and Energy, coal deposits located in Indonesia are estimated at nearly 40 billion tons. 11.5 billion tonnes have already been tested and classified, and the remaining resources are only estimates. Commercial coal reserves are estimated at nearly six billion tons. The main hard coal deposits are located in Sumatra (nearly 2/3 of total resources), Kalimantan, West Java and Sulawesi. In Sumatra, the largest seams are located in the area of ​​Tanjung Enim and are operated by the state-owned PT mine. Tambang Batubara Bukit Asam. Coal located in Kalimantan, which also has the best commercial quality, is exploited by private contractors. PT is the main producer of coal in this region. Kaltim Prima Coal. Hard coal deposits in Indonesia are described as relatively young. Most of them are classified as lignite (59%), sub-bituminous (27%) and bituminous (14%). Anthracite accounts for 0.5% of the total resources.

The sector producing energy from small hydropower plants has the largest, nearly 12% share in total energy production in Indonesia. The largest implemented projects are located in Java (Jalok & TIM, Ubrug, Lamajan), West Kalimantan (P. Kembayung), Molukach (Isal), Lampungu (Batutegi). Most projects are implemented in Sulawesi (about 30 projects with a capacity from 0.2 MW to 22.3 MW). 5% of energy is generated in large hydropower plants, and about 4% comes from geothermal sources. The potential of hydropower is estimated at 76,000 MW (currently it is 3,900 MW). Over the past 20 years, geothermal energy production capacity has reached 787 MW with a total potential of 20,000 MW. The largest reserves of geothermal energy are located in the region of Sumatra (Sarulla), Java and Bali (Wayang Windhu and Dieng). Extracting energy from biomass currently only accounts for 0.6% of Indonesia’s total energy production, but the potential is close to 50,000 MW.

Due to favorable natural conditions, the vegetation period of the year, Indonesia’s agriculture has good conditions for development. In the country’s agriculture there is a tendency to develop industrial crops. The most important include: rubber, coconut palm, oil palm, china trees, coffee, tea, cocoa, pepper. Indonesia is one of the world’s leading producers of natural rubber.

The basic cereal produced in Indonesia is rice. In addition, maize, sweet potatoes and cassava are grown. Animal production is definitely of secondary nature. Most of the animals bred, mainly cattle, are used as tractive force