In the Energy Transition Period, KESDM Dismisses the Coal Industry Sunset

Coal illustration (Photo: Antara)

JAKARTA - Acting (Plt) Head of the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) Muhammad Wafid dismissed the issue of the coal industry entering the sunset period.

Although it has big ambitions related to New Renewable Energy (EBT), he said, the government cannot immediately leave fossil-based energy such as coal.

Wafid said that to achieve NZE, coal is still being pursued so that it is in line and does not collide with the NZE policy direction, considering that Indonesia's coal resources are quite abundant.

"Indonesia's current source of power and coal reserves is still quite large with a total resource of 98.5 billion tons and reserves of 33.8 billion tons," he told the media, Thursday, December 14.

Wafid said there were erroneous assumptions that argued that the coal industry would experience'sunset', along with the growth of EBT as a focus on energy utilization. In fact, to achieve NZE and downstream world minerals, coal is still very much needed. This is what PSDMBP explores, in accordance with one of its duties, namely to explore and provide data on coal potential in Indonesia.

Furthermore, in addition to supporting mineral downstreaming, PSDMBP is currently also exploring other coal potentials by inventory metalurgical coal in Indonesia so that coal has a higher added value.

"Previously, Indonesian coal was sold as thermal coal, whereas for certain types of coal it has the characteristics as metalurgy coal which is useful in the steel industry and mineral processing smelters, so the selling price is much higher than thermal coal," concluded Wafid.