Coal Sector Overview

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Indonesia is a nation rich in natural resources and with increasing energy demand to fuel the country’s continued economic growth.

As Indonesia continues to move forward, coal will be a vital source in meeting the country’s growing domestic electrification needs, as urbanisation and a growing middle class have created the need for greater access to electricity across the archipelago.

Demand for electricity is expected to rise, as the country’s political and business leaders are prioritising energy, infrastructure and electrification projects in the immediate future. In 2016, the national electrification rate rose to 91.2% with national electricity consumption expected to grow at 8.3% annually from 2017-2026. In Sumatra, electricity demand is expected to grow by 11.2% annually (source: PLN RUPTL 2017-2026).

In Riau province – the location of BlackGold’s assets – the electrification rate is behind the rest of Sumatra, creating an opportunity for future power generation. BlackGold Group’s coal concession is strategically located in proximity to regional power plants and meet the calorific requirements for coal utilisation.