Jakarta – Indonesia Mining Association (IMA) Executive Director Hendra Sinadia reiterated that coal is still in demand and its demand continues to increase. This is in line with a statement by an official of the Ministry of Energy and Mineral Resources (EMR) late last year, which said that “coal remains important” and that “there is a false assumption” that the coal industry will experience a ‘sunset’ along with the increasing utilisation of renewable energy.
“In the last five years, coal demand has continued to strengthen, especially through increased exports,” Hendra said in the Money Honey Podcast, Monday, May 6.
Hendra’s optimism for the coal business is based on Indonesia’s abundant coal resources, which can even last for the next 500 years. According to him, although it cannot be predicted when coal will be replaced by green energy, the sustainability of the coal business is still promising.
However, Hendra admits that the biggest challenge for the coal industry is carbon emissions. Although emissions from coal mining are not that large, pollution occurs mainly from steam power plants (PLTU) that use coal as fuel.
“The key in the energy transition is how to reduce dependence on coal and reduce carbon emissions,” Hendra said.
He highlighted the importance of using renewable energy in mining activities to reduce emissions, while pointing out the commitment of coal companies in gradually reducing emissions.
“There have been concrete steps taken, such as the use of biodiesel blends to reduce emissions from coal transportation vehicles,” said Hendra, stressing the importance of carbon capture technology in ensuring the sustainability of coal use.
In Hendra’s view, although the energy transition presents challenges for the coal industry, with a commitment to using the latest technology and continuing to reduce emissions, coal still has the potential to contribute to Indonesia’s long-term energy supply. (Hartatik)
