“Peabody’s Balikpapan office complements ongoing sourcing and business development activities in Indonesia and supports an office in the capital city of Jakarta,” officials said of the office in the East Kalimantan province.

“Indonesia is the fastest-growing supplier of thermal coal to both China and India, and Peabody is positioning itself to assist local suppliers in moving Indonesian coal throughout the Pacific Rim.”

The producer confirmed that it has secured multiple term offtake agreements from the province as well.

Indonesia director of engineering Yosef Setiyawan will head up the new office. His duties include supporting business development and structured transactions.

Setiyawan, who has mining engineering, technical services and business development experience gained from his work with BHP Billiton in Australia and Indonesia, will report to Indonesia vice president of resource development Keith Downham.

Peabody, headquartered in St Louis, Missouri, had 2010 sales of 246 million tons and revenues of approximately $US7 billion.