Opening of the 25th Coaltrans Asia

The 25th Coaltrans Asia had its opening day on Monday, June 24th 2019. The Minister of MEMR, Ignasius Jonan, was initially supposed to open this annual event, but urgent matters occurred and he had to be replaced with Bambang Gatot Ariyono, the director general of Mineral and Coal, MEMR.  On this occasion, Bambang Gatot stated the important role of coal, especially in Indonesia, as one of the largest coal producers in the world. In Indonesia, coal is the largest Non-Tax State Income (PNBP) for non-oil and gas category, where in 2018 the PNBP value of the mineral and coal sectors reached 50.01 trillion Rupiah. The details of the receipt are 500 billion Rupiah from the fixed fees, 29.8 trillion Rupiah from royalties, 19.3 trillion Rupiah from the proceeds of the sales of mines and 400 billion Rupiah from labor services and information’s revenue.

This strongly affects foreign exchange where some of the national coal companies are one of the taxpayers, but this paradigm should be changed not only for the foreign exchange contributor of the country but this coal should be the capital for national development.

In the last 5 years, the government had seen that coal production has a consistently assessed production value in a consistent manner and exceeds the government-defined targets/in the RKAB, but the increase in production is significantly influential to the coal selling price, it is very perceived by the company that has lower middle calorie value. For this matter, the government comes up with a solution for raising the production, or will do the restriction of production to stabilize the coal prices back both nationally and globally.

On the other side, it is said that in the Indonesian Energy Mix stated that the use of coal will experience a decrease in coal usage in 2025 by 25% and will decline again until 2050 in the total number of 25%. However, in the RUPTL PLN 2019-2024, PLN/National Electricity Source in Indonesia still rely on coal usage by contributing about 58% of the needs of power plants. For the use of domestic coal (DMO) the Indonesian government requires to conduct 25% DMO of the company's total production which 80% of the 25% DMO value is intended for power generation. Furthermore, the HBA (benchmark coal price) PLN will remain valid until the end of the year 2019 in accordance with the regulations of the decree of EMR No. 1410 year 2018. 

The government has made several modifications to support technological advancement namely by launching the application called MOMS (Minerba Online Monitoring System) and also E-PNBP. This MOMS is a real time and accurate data management application for the production and sale of mineral and coal sectors based on the approved RKAB. While E-PNBP is a web-based online application that is able to produce accurate calculation of company obligations along with applications for payment and repayment of PNBP Mineral and Coal. Not only in terms of production, the use of coal, its sales only, and the development of technology, but the government is foundering on the environment, how the implementation of greenhouse effect reduction and the weight challenge is to do reclamation post-mining land and related to reclamation funds as well.

Coal is a natural resource that is required to untruck energy but truthfully this coal must create a product that can be felt directly by the community, this is done by increasing the value added by the coal, by gasification that is wrong. The other way is to distribute coal into DME (Dymethyl Ether).

Lastly, the government in this case DirjenMinerba(Dir. General Mineral and Coal) conveyed a gratitude once again for the conference held by Coaltrans Asia, and the government will place its role to support the system of the meeting that supports to facilitate from all aspects of coal.

 

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