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

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



The Industrial Revolution of the 18th and 19th centuries increased the pace of development of valves in terms of design and manufacture to meet the new demands from industry. These design have been fine-tuned in the latter half of the 20th century with the advent of more sophisticated manufacturing methods and the availability of more exotic materials capable of handling the extreme pressures and temperatures of the new and superior fluids which have been developed.

No one knows when the idea for the valve was born. Perhaps somewhere, sometime in the ancient past, man learned to regulate the flow of a river or stream by blocking it with large stones or a tree trunk. However it developed, the invention was almost as important as the wheel, for now man could regulate water flow. The early Egyptian and Greek cultures devised several types of primitive valves to divert water for public consumption or crop irrigation.

It is the Romans, however, who are generally recognized as the developers of comparatively sophisticated water systems. Their plumbing was advanced enough to deliver water into individual buildings, for which they developed the plug valve, or stopcock, and there is also evidence that the Romans used check valves to prevent back flow.

For centuries, throughout the Dark Ages, there were no advances in valve design. Then during the Renaissance, artist and inventor Leonardo daVinci designed canals, irrigation projects, and other large hydraulic systems, which included valves for use in these projects. Many of his technical sketches are still in existence.

The modern history of the valve industry parallels the Industrial Revolution, which began in 1705 when Thomas Newcomen invented the first industrial steam engine. Because steam built up pressures that had to be contained and regulated, valves acquired a new importance.

And as Newcomen’s steam engine was improved upon by James Watt and other inventors, designers and manufacturers also improved the valves for these steam engines. Their interest, however, was in the whole project, and the manufacture of valves as a separate product was not undertaken on a large scale for a number of years.

A valve is a product rarely noticed by the average person, yet it plays an important role in the quality of our life. Each time you turn on a water faucet, use your dishwasher, turn on a gas range or step on the accelerator of your car, you operate a valve. Without modern valve systems, there would be no fresh pure water or automatic heat in your home. There would be no public utilities, and beyond wood and coal, almost no energy of any kind. Plastics would be unheard of, as would many inexpensive consumer products.


a valve is a mechanical device which regulate either the flow or the pressure of the fluid. Its function can be stopping or starting the flow, controlling flow rate, diverting flow, preventing back flow, controlling pressure, or relieving pressure. Basically, the valve is an assembly of a body with connection to the pipe and some elements with a sealing functionality that are operated by an actuator. The valve can be also complemented whit several devices such as positioners, transductors, pressure regulators, etc.

Today’s valves can control not only the flow, but the rate, the volume, the pressure or the direction of liquids, gases, slurries or dry materials through a pipeline, chute or similar passageway. They can turn on and turn off, regulate, modulate or isolate. They can range in size from a fraction of an inch to as large as 30 feet in diameter and can vary in complexity from a simple brass valve available at the local hardware store to a precision-designed, highly sophisticated coolant system control valve, made of an exotic metal alloy, in a nuclear reactor.

Valves can control flow of all types, from the thinnest gas to highly corrosive chemicals, superheated steam, abrasive slurries, toxic gases and radio active materials. They can handle temperatures from cryogenic region to molten metal, and pressures from high vacuum to thousands of pounds per square inch.

The valve is one of the most basic and indispensable components of our modern technological society. It is essential to virtually all manufacturing processes and every energy production and supply system. Yet it is one of the oldest products known to man, with a history of thousands of years.

If you have further inquiries or in case you want more information about valve and the other indutrial equipment, please feel free and do not hesitate to contact us at: