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.