Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) has asked for accelerated downstreaming of coal derivative products. This discourse seems to have caught the attention of coal entrepreneurs because the downstreaming of coal will improve the quality of the coal mining industry.
Chairman of the Indonesian Coal Mining Association (APBI), Pandu Sjahrir, positively welcomed Jokowi’s wish for industry players to create a coal downstream road map. With the downstreaming, it will increase the growth of the domestic coal industry.
“I see this as one of the growth engines for the coal industry in the future. This is an opportunity to change people’s perceptions of coal and players must also change,” Pandu explained in the APBI-ICMA Award 2020 event which was held virtually, Tuesday (27/10) / 2020).
Pandu said that this is also a challenge for business actors engaged in mining to be able to develop technology in their downstream development efforts.
Those who move their business in the coal commodity sector have also started the downstream process. However, Pandu did not specify what these companies have produced in their downstream activities.
“From the business to business side, there have been many increases in the use of technology for downstreaming in various kinds. From my point of view, this is an opportunity,” he said.
“I think there have been several examples. In Bukit Asam, we have done something too. Kaltim Prima Coal has announced their products, and some have explored the downstream development,” Pandu continued.
As is known, last week or to be precise Friday (23/10/2020) Jokowi asked the ranks of ministers and related parties to accelerate the coal downstream process. He also said that a clear road map or road map was needed regarding the downstream plan.
Jokowi wants the coal downstream roadmap to contain strategies and targets related to which derivative products will be produced and needed by the industry.
Jokowi also asked to determine how much production volume, commodity reserve area, production location to be developed, and the market.
“Make sure the areas have sufficient coal reserves to guarantee the supply and demand for coal in this downstream process,” he said.
Meanwhile, for the downstream form, he said the processes that could be carried out were starting from improving industrial quality or upgrading.
Then, it is continued by producing coal briquettes, coke, coal liquefaction, coal gasification to coal mixture.
“For me, I ask for a road map to optimize the use of coal in the country to really be accelerated by the application of environmentally friendly technology,” he said.
Jokowi asked for coal downstreaming because he saw a number of obstacles that made the development of the domestic coal industry experience difficulties.
Jokowi believes that this problem can be resolved if companies in the mining and mineral sectors can cooperate with state-owned companies.
Moreover, currently only a few companies hold Special Mining Business Permits (IUPK).
“This can be resolved if the company or BUMN has a partner and we in 2019 only 5 IUPK OP holders have carried out coal upgrading and only 2 IUPK / OP holders are producing coal briquettes,” explained the former DKI Governor.
(hps / hps)
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