ASIATODAY.ID, BALI – The Indonesian government has offered China to develop and increase the added value of coal in the form of other products, such as coal quality improvement (coal upgrading), coal briquetting, cokes making and coal liquefaction.
The offer was made directly by the Acting Director General of Mineral and Coal, Bambang Suswantono at the 7th Indonesia China Energy Forum (ICEF) in South Kuta, Bali, Tuesday, September 3 2024.
This offer is part of Indonesia’s commitment to reducing the greenhouse effect target on national development as ratification of the Paris Agreement through Law No. 16 of 2016 which has been signed by Indonesia. Gradual reduction in coal consumption and development in other forms are concrete steps to achieve this goal.
“One of the policies in managing coal is to reduce the use of coal at the same time as ending the Coal Steam Power Plant and developing it into other forms, especially gas to meet the needs of LPG and other chemical industries such as fertilizer,” said Bambang.
To accelerate the downstream program and increase the added value of coal, the government has offered to various parties so that this program can run as expected.
“We offer investment in developing downstream coal in Indonesia in the form of methanol, DME and others,” continued Bambang.
Bambang explained that coal can be processed into derivative products, both as industrial raw materials and energy sources. The six coal development products that can be carried out currently are improving coal quality (coal upgrading), coal briquettes, coke, liquid coal, and coal gasification, including underground coal gasification.
In order to support the accelerated development of this program, apart from providing three incentives, the government also requires the extension of the Coal Mining Concession Work Agreement (PKP2B) to become a Special Mining Business Permit (IUPK), business entities must submit plans for the development and/or utilization of coal.
“Currently there are 6 IUPKs that have planned the development of coal into gas, fertilizer and coke. The current status is carrying out economic studies and feasibility studies and hopefully in 2030 they can be commissioned,” said Bambang.
For information, Indonesia currently has coal resources of 97.29 billion tons and reserves of 31.71 billion tons, of which 70% of the total resources are low quality coal and the remaining 30% are high and medium quality coal.
Most of the resources and reserves are spread across East Kalimantan, South Sumatra, South Kalimantan, Central Kalimantan and Jambi. The rest are spread across Jambi, Riau, North Kalimantan, Aceh, Bengkulu, West Sumatra and Papua, West Sulawesi, western Java. (AT Network)
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