Nudira Sumber Daya Indonesia

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


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

Indonesia’s President was an Exporter

Indonesia’s President was an Exporter

Before serving as Indonesia’s 7th President, Mr. Joko Widodo first started his career as a furniture entrepreneur. In his hometown, Solo, Jokowi wrestled down to develop the business. Starting from seeking capital to taking care of employees. His company exported furniture to Europe, America, and now many also go to Korea and Japan.
So that makes him know very well the ins and outs of trying. Jokowi recounted how difficult it was to find business capital in the beginning, then went around looking for buyers, taking care of complicated permits, filling out tax returns, taking care of employees, employees, and managing production equipment.

The President of the Republic of Indonesia, Joko Widodo, talked about the difficulty of being a businessman, so he told the young generation who wanted to start a business not to give up easily. Despite having a busy life as a president, it did not necessarily make his business stop. Never be afraid to start a business. Because, failure is a common thing felt by someone who pioneered his business. To start a business there is no right time. Get started at any time. What is clear is that it will never happen if it doesn’t start.
Until now, furniture production is still routinely exported to Asia and Europe.
The President is just an exporter, let’s try … to start the export business.

now it is your turn to doing export or even import business to make your country bettter.

What Are The Document Requirement for Export Business

What Are The Document Requirement for Export Business

For the need for export legality documents, you should have thought about having a business that has complete legality such as: SIUP (Trading Business License), TDP (sign of company registration), NPWP (principal taxpayer number) and other permits related to the product You will export. While other export documents that you must know are as follows.


That is a document / letter of agreement between the seller and buyer that is a follow-up of the purchase order requested by the importer. It contains the terms of payment for goods to be sold, such as price, quality, quantity, method of transportation, insurance payments and so on. This contract is the basis for buyers to fill out the application for opening an L / C to the Bank.


That is, offers in the form of ordinary invoices from sellers to potential buyers. Proforma invoise is also an offer to buyers to place their orders which often often get requests from buyers so that the seller gets an import permit from the authorized agency in the importer country. This invoice usually states the terms of sale and purchase of goods. So that after the buyer has agreed to the order there will be a definite contract. The use of this invoice is also used if the settlement will be made in advance of payment before shipment, on a consignment basis or depending on the tender.


That is the note of details about the amount of goods sold, the price of the goods and the calculation of the payment. This invoice is addressed by the seller (exporter) to the buyer (importer) whose name and address are as stated in the L / C and signed by the person who has the right to sign it.


That is the guarantee from the issuing bank to the exporter in accordance with the instruction from the importer to make a certain amount payment with a certain period of time based on the submission of documents requested by the importer


documents that prove and explain that certain supervision and checks have been carried out on related products.



That is a letter made by the Shipper (the owner of an item or an expedition company) addressed to the carrier / ship (shipping) to receive and load the cargo contained in the letter


Namely documents from exporters submitted to surveyors to submit export products that have been analyzed and verified and tested to qualify for customs because they have fulfilled export requirements.


That is the report on the results of technical import / verification conducted by an independent surveyor appointed by the Ministry of Trade.


Customs documents used to notify the implementation of the export of goods. PEB is made by exporters or their proxies by using PEB software online.


That is a note issued by an Export Document Checker or a Computer Service System for Goods Export Notification (PEB) submitted, to protect the entry of goods to be exported to the Customs Area and / or their loading to the transport facility.


That is the receipt of the goods that have been loaded into the ship which is also a proof of ownership of the goods. Also as proof of the existence of a contract or agreement to transport goods by sea. Air Way Bill (AWB) is the same document as B / L which explains ownership of imported goods carried out using the air line.


This document is made by the exporter explaining the description of the goods packed, wrapped, tied in a crate that is usually required by customs.


A statement signed to prove the origin of an item is used to obtain import duty facilities or as a quota counter in the destination country and to prevent the entry of goods from prohibited countries. documents stating the origin of the goods we import, usually in the issue by e-commerce (Trade Department) in the country of origin of the goods.


That is the proof of accountability issued by the insurance company at the request of the exporter or importer to ensure the safety of the goods sent. An insurance policy is important because it can prove that the items in it have been insured. This document also mentions the risks that are closed. This document states which party requests insurance and to whom party the claim is paid. Each insurance must be paid in the same currency as the L / C, except in the L / C terms there is another statement.

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Indonesia’s ability to export essential oils is inversely proportional to the ability to produce downstream products such as perfume and cosmetics. As a result, Indonesia produces essential oil which imports a lot of finished products from processed essential oils. Perfume is one of the important body care needs for someone. However, if asked what is essential oil, maybe not everyone knows it.

Perfume and essential oils have strong links.

Essential oils such as patchouli oil can function as an important binding agent for perfume making. Essential oils or essential oils or also often called aromatic oils are not as popular as finished products.
This “perfume seed” is extracted from plant parts such as leaves, fruit, seeds, flowers, roots, rhizomes, bark, even all parts of the plant. In addition to perfume, essential oils are also raw materials for cosmetics, pharmaceuticals / medicines, and the food and beverage industry. Essential oils are produced by 160-200 various aromatic plants, some available in Indonesia.
It is estimated that there are 12 types of Indonesian essential oils exported to the international market from 80 essential oils in the world. The types of essential oils exported include patchouli oil, fragrant lemongrass, fragrant roots, cananga, ginger, and nutmeg.
Patchouli oil becomes a star for Indonesia’s essential oil export exports. Indonesia supplies around 85 to 90 percent of the global patchouli oil market volume of 2,000 tons per year. Patchouli oil production is dominated in Java and Sumatra, but in recent years it has begun to shift to Sulawesi. Sulawesi produces around 80 percent of Indonesia’s patchouli oil. Part of the export is still in the form of unprocessed oil into downstream products.
The export value of essential oils is one of the main sources of foreign exchange for Indonesia. In the list of 10 potential commodities from the Ministry of Trade, the export value of essential oils and fragrance cosmetics was around $ 580 million to $ 637 million during the period 2011 to 2015. The main export destinations among the United States and Europe. Unfortunately, the downstream industry in the country has not been able to maximize this great potential. The proof, the import value of essential oils and fragrance cosmetics is always greater than the export value of essential oils, with import values ​​in the range of $ 750 million to $ 1.1 billion from the period 2011 to 2015. In 2015, Indonesia had to import $ 962 million, but the export value of these commodities only $ 637 million.
This fact is further confirmed by the absence of a list of Indonesian fragrance cosmetics producers which are included in the top 10 lists of world companies engaged in flavoring and fragrances. For the record, according to data processed by Statista, the top position on the list is Givaudan based in Switzerland.

In 2014, Givaudan was able to record sales of $ 4.82 billion. In the second position there is Firmenich which is also based in Switzerland with a sales record of $ 3.38 billion. The company is working with famous perfume brands to produce perfumes such as Boss Bottled by Hugo Boss and Romance by Ralph Raulen. Third place is International Flavors & Fragrances Inc. (IFF) based in the US with sales of $ 3 billion.
Tantalizing figures from world perfume producers, this proves that the downstream industry that processes essential oil fragrance raw materials is not negotiable anymore. Unfortunately the domestic industry is still limited to exporting essential oils that have not been processed as finished products.
In Indonesia, there are indeed a number of large producers who are involved in the fragrance industry, including Kinocare Era Kosmetindo and Mandom Indonesia. Kinocare produces products such as Eskulin, while Mandom is famous for its products such as Gatsby, Spalding, and Pucelle. In 2015, Mandom recorded sales of Rp 2.3 trillion. While Kinocare recorded sales of Rp 3.6 trillion. This value is very far when compared to Givaudan or Firmenich who focus on perfume products. This global producer is able to reap the money from the global fragrance market. According to a survey conducted by Leffingwell & Associates, the global flavor and fragrance market is valued at $ 24.1 billion in 2015, and Southeast Asia accounts for 10 percent.

Seeing the reality of the fragrance and perfume market, it is unfortunate if Indonesia is only an exporter of essential oils. Downstream industries including essential oils are unfinished homework. If left unchecked, Indonesia is only a consumer country of downstream fragrance products. A chronic irony.


Let’s try … to start an export business, our Nudira Sumber Daya Indonesia tries to help you to understand how to get involved in exports, we will also share tips for you to easily run your export business. and we also  providing the high quality essential oil from indonesia that ready to export overseas.