Coal is still needed for Indonesia’s development

COAL is still the capital of Indonesia’s economic revival. The reason is that Indonesia still needs renewable energy, apart from renewable energy.

“Renewable energy that relies on water, wind and sun is still limited and not sufficient. That is why coal is still needed,” VP Investor Relations & Chief Economist of PT BUMI Resources, Achmad Reza Widjaja, said in Bandung on Thursday (7/4).

Accompanied by PT BUMI Resources Manager Investor Relations, PR & Media, Ricco Surya, he added that the use of coal should be wise. In terms of environmental issues, for example, the problem in Indonesia is caused by small mining companies.

Also read: Indonesia must maximize the use of clean and environmentally friendly coal

“They mine coal and then leave the holes they dig. There is no environmental management,” he continued.

Meanwhile, big mining, Reza explains, is really paying attention to the environment. PT Bumi Resources itself has received several awards in the field of environmental management, the number of which is legion.

He further revealed that Bumi Resources was previously a foreign company. It was then acquired by the Bakrie Business Group, which is very concerned about the environment and sustainability.

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“When PT Bumi Resources does mining, it always consults with the Ministry of Environment. Even if oil drops fall into the mine, we are fined very heavily by the Ministry of Environment,” he added.

Production is increasing

So far, Reza says, the government is sticking to coal. Because the only available energy is coal, depending on people’s purchasing power. One of them is used for steam power plants that use coal as fuel.

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He said that in 2023, the national coal production target is 690 million tons per year. At the end of the year, the government increased it to 770 million tons. In 2024, the target will be increased to 970 million tons.

PT Bumi Resources currently operates two mines that can produce coal for the next 110 years.

Coal can be converted into various types of value-added products such as methanol, LPG and ammonia.

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As for coal production, Reza said that the production target continues to increase every year. There is an obligation that 25% of production output will go to PLN.

“Mining is the largest contributor to the state’s non-tax revenues, at about 10%. Coal is certainly still the capital for the country’s economic recovery,” he concluded.