Coalbed methane is a new energy resource that has not been developed in Indonesia. The reserve is estimated about 213 Tcf and spread over 16 basins. The utilization of this new energy resource will undoubtly contribute the industrial development in the country. This paper focuses on the technical and economic aspects of coalbed production in Jatibarang field, West Java. The methane reserve in this West Java area is 21 Tcf, and the location is quite strategic due to its proximity to the highly viable market of growing industrial nearby area. This paper presents a proposal of CBM development in Jatibarang field. The result shows a very lucrative return for the investment on the project based on production sharing agreement.

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