Fossil Energy Still Needed, Bahli Calls Coal Entrepreneurs To Step On Gas

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia called for the continuation of the coal industry to entrepreneurs.

Bahlil said, in the midst of the government's efforts to intensify the use of new and renewable energy (EBT), Indonesia still needs fossil energy.

He also did not deny that Indonesia did approve the Net Zero Emission (NZE) 2060 agenda, but coal is still a fairly competitive, cheap energy source, and can generate competitive costs to produce products.

"We agree with global thinking, but we also measure our world. Our baseline is different from the baselines of developed countries," said Bahlil, quoted on Thursday, December 5.

He asked coal entrepreneurs not to hesitate because until now, European countries that echo NZE are also still supplying coal from Indonesia.

"For now, Europe is still asking for coal from the Republic of Indonesia. Yes, we are honest, I know. Don't be like other exercises, play differently," he added.

He continued, actually green energy and green industry are indeed good applied for future sustainability but require expensive technology.

Therefore, Indonesia cannot immediately force the achievement of the energy transition target if it is economically unable.

"As long as the technology (renewable energy) is still expensive and our economy is not strong, we must be sincere with our conditions," he said.

Bahlil said the transition to renewable energy would be carried out slowly adjusting to Indonesia's capabilities.

Pararel with that, fossil energy will still be used to support the maintenance of the national economy.

So, Bahlil asked entrepreneurs not to hesitate regarding the conditions of the fossil energy industry in the future, especially coal.

According to him, if the coal industry continues to develop, it will actually help state revenue, considering that coal is one of Indonesia's main commodities,

"So we still think that entrepreneurs in coal, continue, there is no problem. Especially if production is good, state PNBP can be good, regional economic growth is good. So there is no problem," said Bahlil.

On the other hand, Bahlil also asked the perpetrators to downstream coal as part of a program that the government had long advised.

With downstreaming, Bahlil continued, there will be an increase in the value of coal commodities so that entrepreneurs and the state get more value.

"Hilirisasi ini harus menjadi bagian yang harus kita lakukan," tandas Bahlil.