Mines and Energy coal director Soedjoko Tirtosoekotjo said three contracts covered East Kalimantan, two Central Kalimantan, four South Kalimantan, one South and central Kalimantan and two in South Sumatra.

"Under the contract with local firms, the government will have the right to 13.5 per cent of coal production in cash," he said.

He said the contracts were basically the same as contracts with foreign firms. Indonesia on April 19, 1999, signed coal contracts with Australia's Broken Hill Proprietary Co Ltd for two areas in Kalimantan.

Indonesia has said coal production was expected to rise to 71 million tonnes in calendar 1999 from 61 million tonnes in 1998.