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The Mining

Indonesia is rich in minerals although only less than half the country's geology has been explored. Oil and gas accounts for a major part of the nation's foreign exchange earnings.
Exploration of oil dates back to 1 871 in West Java but it was not till 1883 that the first successful oil well was drilled in North Sumatra and the first commercial oil field established. Since then there have been several oil discoveries, including those off-shore. PT Pertamina, the state-owned oil company has the sole right in oil and gas production which is carried out mainly by a production sharing agreement with foreign oil companies.

Apart from oil and gas, exploitation of geothermal reserves are being accelerated, coal production is increasing. Copper is found throughout the archipelago. There are also large deposits of nickel oxide, bauxite, gold, lead, manganese, silver, titanium, uranium, zinc, etc.



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