By the end of this decade Indonesia may be a net importer of oil. In these circms tances it may need to exploit its vast coal reserves for manufacture fuels if this can be done economically. British Coal's of transport fuels if this lique faction process is at the pilot stage and has the potential to produce substitute transport fue ls more efficiently and cheaply than existing processes. For instance, a breakeven cost of US30$/bbl crude (equivalent) is estimated to be possible for good quality coal at US25$/tonne.