China and Indonesia Coal Trade Present and Future after the 2008 Financial Crisis

ZERRO TARIFF

The policy of “zero tariff” has solved the problem of domestic coal using since 2008, but also raised the coal trade between China and Indonesia. However, some factors have affected on the coal trade in recent years, such as the Indonesian raising domestic demand reduced exports and Chinese policies for Indonesian coal imports controls. This article through to analysis the current situation and import and export capacity of the coal trade between China and Indonesia, utilizing the judgment index of regional economics, it is concluded that the comparative advantage of China and the degree of complementary, then illustrates the problems and solution suggestions in the process of coal trade between the two countries, finally prospects the coal trade of China and Indonesia.

From the global resource situation, coal is still a very important source of energy materials. 2012 World proven coal reserves, enough to meet the needs of the global production by 112ears, is the highest ratio of fossil fuel reserves and production of the fuel. Europe and Eurasia is the largest coal reserves in the region, has the highest storage capacity ratio. The world’s coal reserves and reserves and production scale than the second place, respectively, in the Asia Pacific region, North America.

2012, coal production has once again become the fastest growing fossil fuel, compared to 2011 increased by 2%. Consumption, the world coal consumption fell by 2.5%, only the Asia-Pacific region is still a net increase in consumption in North America showed a -11.3% decline, offset by growth in other regions. Among them, China’s coal consumption grew by 6.1% in Indonesia grew by only 2.8%. Indonesia’s coal resources are very rich, is China’s leading supplier of materials, such as coal, nickel ore, bauxite, iron ore. According to BP2013 Energy statistics show that Indonesia has proven coal reserves of 5.529 billion tons, accounting for 0.6 % of the world total, ranking 13th in the world, compared to 2010 to enhance the two.

The coal resources and more storage were in Sumatra and Kalimantan. Anthracite and bituminous coal which proven reserves of 1.52 billion tons, sub-bituminous and lignite proven reserves of 4.009 billion tons, reserves and production ratio is 14. Indonesia’s production of lignite-based, the proportion of lignite, sub- bituminous and bituminous coal were 59 %, 27 % and 14 % for less than 0.5% of anthracite. 2012 China’s coal output grew by 3.5 percent compared to 2011, Indonesia grew by 9%.

The Indonesian government believes that there is still potential to increase its coal production, coal production in 2014 is expected to reach 309 million tons . With the rapid growth in domestic coal demand and market prices continue to rise Indonesia coal production and exports increased year by year. According to the Indonesian Ministry of Energy and Mines, in 2012 78% of Indonesia’s coal production (nearly 200 million tons) for export, making Indonesia the world’s largest coal exporter. Asian countries accounted for more than 70% of Indonesia’s coal exports, mainly exported to India, Japan, China and other countries.

Although China is rich in coal resources, but since 2008, officially became a net importer of coal , imports accounted for about 95 percent of its global coal trade , followed by China , Indonesia has become an important supplier of coal fuel. China has become the world’s largest coal consumer. According to Chinese Customs statistics, from 2008 to 2012 in five years, China’s coal imports rose from 040.4 million tons to 289 million tons. For Indonesia, the Chinese market has a huge consumer of coal, the two geographical proximity, Indonesia regards China as an important partner of the coal market. Coal Indonesia and China’s cooperation is more reflected in the coal trade in recent years, China’s coal exports increased year by years to become China’s largest coal importer. In 2012, China imported 118 million tons of coal from Indonesia , an increase of 83% , amounting to $ 9.37 billion, p 48%, accounting for 30% of China ‘s total coal imports. In the first half of 2013, China’s imports of coal from Indonesia, has been accounted for 35.49% of the imports. On coal and electric power industries, cooperation between Indonesia and China there is a clear complementary effects, there are many Chinese companies in Indonesia registered company involved in mining development in Indonesia.

Doc. published by EDP Sciences, 2014

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