The government is asked to still consider the optimal use of coal for domestic energy needs. This is because coal as a cheap energy source in Indonesia has resources of up to 99.19 billion tonnes with reserves of 35.02 billion tonnes.
Deputy General Chair of the Indonesia Mining Association, Ezra Leonard Sibarani, said that referring to reserve data from the Ministry of Energy and Mineral Resources, if coal production is assumed to be 700 million tons per year, coal reserves will only run out in the next 47-50 years.
If used alone for domestic needs, which are projected at 200 million per year based on calculations of the increasing trend of Electric Vehicles, the lifespan of coal reserves could be up to 150 years.
“So there is still a long way to go and if we look at 2060 NZE, it means that at that time there will still be a lot of coal. So what do we want to do with this,” said Ezra in a workshop entitled “The Strategic Role of Coal in the Energy Transition”, at the Aryaduta Hotel, Central Jakarta, Friday (12/15/2023).
Currently, said Ezra, the challenge in the energy transition towards the use of new and renewable energy is that the costs required are very large, reaching IDR 3,500 trillion. The need for large funds to achieve the decarbonization or Net Zero Emission (NZE) target by 2060, one of which is to retire many coal-powered power plants.
Even though the generator can still be operated using new, more environmentally friendly technology. “With coal still around and the expensive costs of the energy transition, why not continue using coal,” he said.
So, because of the large potential of coal, IMA recommends considering whether it is possible to use coal beyond 2060. Apart from the fact that coal has an important role, the costs of the energy transition by utilizing New Renewable Energy are very large. “We have to consider carefully, lest we owe more debt to our children and grandchildren,” he said.
According to Ezra, the government needs to consider short and long term programs for the clean use of coal in PLTUs while considering EBTKE financing in stages. “So the concept is clean coal. If possible, the government can consider this to reduce emissions. So don’t let it burden state finances and don’t transition too quickly so that what we have can be used optimally,” said Ezra.
Eko Yunainto, SVP of Coal Planning and Development at PLN Energi Primer Indonesia (EPI) said that in Java and Bali in 2024, coal demand will increase by 90 million tons. Likewise, in Sumatra, Kalimantan and Sulawesi, the need for coal is also growing.
“In 2025 there will be a decrease in the need for coal because there are several PLTUs that are already retired,” said Eko.
He revealed that demand for coal until 2030 would still grow at 153 million tons in 2030. “In parallel with the growth in demand, cofiring will also increase, green energy will also increase but it will still be less contributed by the growth of PLTUs,” said Eko.
Lana Saria acknowledged that the role of coal is increasingly important because the use of renewable energy in the current energy transition period is only around 2% of the existing potential. “Coal is currently still dominant at 42.4%, followed by fuel at 31.4% and gas and NRE. So it is still the main energy source, because the potential of coal is still very large compared to other energy sources,” said Lana.
In 2023, the national coal production target reaches 694.5 million tons. The production is aimed at DMO 176.8 million tonnes and exports 517.7 million tonnes.
“Production until November reached 710.75 million tons of coal. Assuming average monthly production of 64.6 million tons, by the end of the year it is projected to be 775.17 million tons or 111% of the 2023 target,” said Lana.
Most of Indonesia’s coal reserves have medium calories (5,100-6,100 cal/g) namely 54% and low calories
Not only does it support national energy sources, coal’s contribution to state revenues is also quite large. Through royalties on Non-Tax State Revenue (PNBP), coal’s contribution is recorded to be the largest compared to other mineral and coal commodities, such as gold and copper.
“As of December 11 2023, PNBP from coal royalties reached IDR 94.59 trillion, exceeding the 2023 PNBP target of IDR 84.26 trillion,” said Lana.
