Technology Transfer to the Emerging Coal Mining Industry of Indonesia

Technology transfer is a vital requirement for increasing national capability of coal mine production in Indonesia. The term can cover the introduction of new equipment, facilities and processes and approaches to training and education. Constraints on technology transfer within the Indonesian coal mining industry are reviewed. The contributions that foreign companies working within the industry can make are discussed. It is concluded that the development of major Indonesian coal mines needs input of advanced foreign technology. The foreign mining companies are investing significant capital in operations and are permitted to import outside expertise due to some lack of national skills. Expatriate employees are expensive and have a direct effect on profitability. The success of any replacement program of foreign employees is dependent on technology transfer. There are statutory Indonesian Government directions to reduce dependency on foreign expertise over time.