The Ministry Of Energy And Mineral Resources Has Prepared 3 Incentives To Accelerate Coal Downstream, Anything?

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Mineral and Coal (Ditjen Minerba) has prepared a number of incentives to encourage the acceleration of coal downstreaming.

To support the downstream coal, Acting Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Suswantono said the government provided three incentives for companies committed to downstreaming coal, namely by reducing coal royalties rates specifically for coal gasification by up to 0 percent.

Then the regulation of special coal prices to increase the added value (gasification) carried out in the mouth of the mine.

"The third incentive is that the validity period of the coal mining business license specifically for coal for gasification is given according to the economic age of the coal gasification industry," he told the media quoted on Friday, September 29.

Just so you know, Indonesia's coal production in 2022 will reach 687 million tons, an increase when compared to coal production in 2021.

Coal production in 2022 is used to meet domestic needs of 215 million tons, one of which is as a supply for the needs of coal power plants, while some are marketed abroad.

Although coal production has increased, Bambang revealed that according to the scenario of the road map to Net Zero Emission (NZE), coal production will decline by 2030.

"The decline in coal production is due to a decrease in the number of coal exports, as well as coal needs as raw materials for power generation, along with the increase in raw materials from New Renewable Energy (EBT) to power generation sources," explained Bambang.

Therefore, Bambang said that one of the strategies in the use of coal is coal downstreaming, in line with the program of Indonesian President Joko Widodo in downstreaming the industry to achieve gold Indonesia by 2045, so that it will provide added value to the products produced.

Later, he said, coal can be processed into derivative products, both as industrial raw materials and energy sources such as Dimethyl Ether (DME), Methanol, Synthetic Gas, Hydrogen and Amongia.

Currently, several downstream coal industries have been completed, namely coal briquettes, making kokas, and upgrading coal.