FUTURE PROSPECTS OF THE INDONESIAN COAL MINING SECTOR

         The coal commodity of the 2000s generated significant profits for companies engaged in the export of coal. The rise in coal commodity prices was - to a large extent- triggered by accelerated economic growth in emerging. But this profitable situation changed with the outbreak of the global financial crisis in 2008 to cause coal commodity prices went down fast. 

          The beginning of 2011 coal commodity prices sharp rebound. However, reduced global economic activity has diminish demand for coal, thus resulting reduction coal commodity prices starting from early 2012. Apart from indolent global economic growth, there is also another factor at play. On the 2000s many new coal mining companies were established in Indonesian while existing coal miners has raised investment to expand production capacity. This caused supply's abundant and the more aggravated by wishes coal miners’ in the years 2010-2013 to produce and sell as much coal as possible - middle low coal prices - in order to generate revenue.

          Although the growing awareness to reduce dependency on fossil fuels, developments in renewable energy resources do not show an indication that dependency on fossil fuels will be reduced significantly in the future, thus coal still be a vital energy resource. Indonesian will get opportunity in the future and Indonesian is expected to become very involved in the process being a major player in the coal mining sector.