Jakarta – Despite the government’s ambitions regarding renewable energy, it recognises the important role of coal in the national energy context, according to an official from the Ministry of Energy and Mineral Resources (EMR).
EMR Acting Head of the Geological Agency, Muhammad Wafid, said that to achieve the net zero emission (NZE) target by 2060, the Indonesian government continues campaigning for new renewable energy (NRE) as an environmentally friendly energy resource.
“Indonesia’s current coal resources and reserves are still quite large with total resources of 98.5 billion tons and reserves of 33.8 billion tons,” Wafid said at the National Coal Seminar with the theme “Unlocking Hidden Gems in Coal Towards Net Zero Emission”.
In October, advisor to the Minister of Energy and Mineral Resources (ESDM), Ego Syahrial, said Indonesia seeks to accelerate energy transition by developing hydropower, nuclear, and green hydrogen facilities and a total phase-out of coal-fired power plants by 2058.
Domestically, coal fuels most of Indonesia’s electricity supply, currently primarily subsidised. The Institute for Essential Services Reform (IESR) views fossil energy subsidies as counterproductive to energy transitions and achieving decarbonisation by 2050. IESR cited Climate Transparency 2021 data that Indonesia spent USD 8.6 billion on fossil fuel subsidies in 2019, 21.96% of which was for oil and 38.48% for electricity.
Wafid stated that there is a false assumption that the coal industry will experience a ‘sunset’ along with the increasing utilisation of renewable energy. He emphasised that coal remains an irreplaceable resource to achieve NZE and advance the mineral downstream industry.
The Geological Agency, through the Center for Mineral, Coal and Geothermal Resources (PSDMBP), is actively exploring and providing data on coal potential in Indonesia. Wafid highlighted the importance of inventorying metallurgical coal with high value-added, especially in the steel and mineral processing industries.
“Previously, Indonesian coal was sold as thermal coal only, even though certain types of coal have characteristics as metallurgical coal useful in the steel industry and mineral processing smelters, so the selling price is much higher than thermal coal,” he added.
In the seminar, PSDMBP also focused on further exploration of coal potential, including extracting advanced materials and humic acid from coal. Wafid hopes that the seminar can open the eyes of all stakeholders in the coal industry to synergise in supporting energy transition and NZE.
“This seminar is organised to reveal hidden gems, potential, or other utilisation of coal that we may not know much about. I hope that after participating in this seminar, all stakeholders in the coal sector can work together in synergy to encourage the development and utilisation of coal, open up opportunities and accelerate the disclosure of coal potential to support energy transition and NZE,” Wafid concluded. (Hartatik)
