The coal industry can be split into two broad sectors – namely coal-mined that is burnt domestically; and the seaborne market, where coal is mined and exported to countries that need to import energy. For coal used in energy, Indonesia produces and exports three types of coal: high energy bituminous, lower energy sub-bituminous, and very low energy lignite coal. Power stations that burn coal for electricity want to buy a fuel that is energy-efficient and cheap. Indonesian coal production is skewed towards lower energy and cheaper sub-bituminous and lignite coals.
