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1.3 Rubianto
1.3 Rubianto
1.3 Rubianto
Rubianto Indrayuda Deputy Director on Coal Mining Services Directorate General of Geology and Mineral Resources Ministry of Energy and Mineral Resources SUMMARY The role of coal in Indonesia will continue to grow due to in the limitation of current oil resources and overall there is an increase of coal domestic and export demand. On the basis of the significant role of coal in the framework of national energy development in Indonesia, the government then formulated and established a National Coal Policy to define the role of government in playing in the coal industry and that the role of the private sectors as well as stakeholders. The National Coal Policy has been signed by Minister of Energy and Mineral Resources on January 29, 2004 to be used as guidance for promoting coordination and harmonization in management, exploitation, utilization and development of coal within the period of 2005 to 2020. The objective of Indonesian National Coal Policy is principally to secure the availability of coal supply for domestic use and export in the long run. Currently, Indonesia has recorded as the second largest exporter of steam coal in the world. Within the last 10 years production has grown from around 22.9 million tons to 114.2 million tons in 2003. There are four major domestic coal consumers namely power plants, cement industries, manufacturing industries and the small scale and household industries. It is estimated that coal demand in Indonesia, particularly for power, will increase from 47.7 million tons in 2010 and reach 72.0 million tons in 2020. In line with the strong demand of coal both in the international market and domestic, it is predicted that Indonesian coal production will continue to grow in the future Majority of Indonesian coal is low in rank; hence the development of such coal is the key of future coal industry. Incentive in the form of lower royalty rates will also be granted by government for the production of low ranked coal, and coals that are produced by underground mines.
Directorate General of Geology and Mineral Resources Ministry of Energy and Mineral Resources of the Republic of Indonesi
Utilization Policy
Diversification Price Lignite Coal Briquette Coal Bed Methane National Coal Stock
Development Policy
R&D Training/Indonesiation Organization Data/Information Coal Technology Center
Direction of NCP
1. To manage coal resources and maintain its capacity in order to acquire greatest benefits for people welfare from time to time. 2. To increase the utilization of coal resources and to keep the environment by conservation, rehabilitation, efficiently use, and application of environmental friendly technology.
2.
b) Improving Coal Utilization Technology c) Developing Coal Clean Technology d) Developing Integrated Infrastructure on Coal Transportation e) Increasing Coal Utilization for Domestic f) Developing Liquefaction Plant g) Developing UBC Plant h) Developing Gasification and Coke Plant
13 %
Quality
TOTAL
57,847.74
6,981.62
T
F.S
S
Total Product. Trmd
Constr.
CCoW; 4 4
eneration I
4 29 33
3 19 22
2 8 10
10 6 6 22
1 3 46 50
11
eneration II
18 (9*)
112(10*
141(19*
32 32
6 286 292
7 128 135
13 446 459
rivate Companies
Estimation of Coal Contribution in the Energy Mix and Electric Generation (2005 2020)
Remarks
13,1 15 16 18 19
25,0 33,0 47,0 70,0 96,0 Data based on Indonesia electric power plan, reprocessed data analyses by FIKTM ITB, Yayasan Lentera/DPMB.
128,9
2015 2020
25
50
75
100
125
150
175
200
225
250
Million tons
State Owned (Bukit Asam, PT) Contractors Mining Authorization Holder & Cooperative
Million Tons
Sources: 1.Indonesian Cement Association, 2003 2.State Electric Company, 2003 3. Data on average from studies by IEEJ, JICA, Monenco Canada, DMCE, FIKTM-ITB, based on energy growth rate (6.9%) and electric power growth rate of about 9% and GDP of 5-7%.
Million Tons
Remarks
State Owned (Bukit Asam, PT) Contractors Mining Authorization Holder & Cooperative
Challenges of
Indonesian Coal Development
hallenges
Most of Indonesian coal is classified as low rank coal which requires specific treatments for its utilization Coal resources are mostly situated at remote areas and lack of infrastructure system Low of intensification of detailed coal exploration program (limited coal reserves data) Coal has been classified as mining commodity rather than strategy commodity by most of Autonomous Regions (overproduction/uncontrolled) Coal is mostly used as raw material (no added value)
Major Problems
Disharmony in decentralization of authority in coal management between the Central Government and the Autonomous Regions (overlapped area and uncontrolled coal production level) Weak of law enforcement (illegal coal mining) Overlapped regulation in land use and interests (Protected Forest and Tax) Environmental regulation classifying mining waste as hazardous material Lack of infrastructure system Decrease of mining investments
1,500 1,000 500 0 1997 1998 1999 2000 97.56 2001 114.23 2002 61.28 2003 93.74 83.56
CCoW CoW
4 3 2 1
0 1995 1996 1997 1998 1999 2000 2001 Global exploration spend Indonesian exploration spend as % of global
0.00%
Source : Global Expenditure - Metals Economics Group Pengeluaran Indonesia PWC, Mining Survey 1999, 2001
2.
Medium and Long Term Targets (Based on the Road Map in Mining Sector)
a.
Re-Evaluation of: Law and Regulation and its implementation Environment Land and Forestry Tax and Other Levies Government Coordination: Province and District/City Inter Departmental Stake Holder Participating Approaches Association: Industry and Services Professionals Non Government Organization (NGO)
b.
c.
CLOSING REMARKS
Coal is truly a great opportunity to Indonesia, therefore it has to be capitalized to assure sustainable economic development and elevation of the welfare of Indonesian people as mandated in Basic Legislation 1945. The NCP is principally needed to; a. secure the availability and supply of coal for domestic and export needed in the long term b. increase the contribution to the State revenue; c. support energy diversification policy; National Coal Legislation and National Coal Board are the most important program to be done in order to implement NCP effectively. In line with the strong demand of coal both in the international market and domestic, it is predicted that coal production will continue to increase. In order to improve the mining condition and investment, the new Indonesian government has taken some strategic actions to make more a social and political stability as currently be a concern of investors.
BIODATA Rubianto Indrayuda Marital Status Date of Birth Address : : : Married May 28, 1953 Directorate of Mineral and Coal Enterprises JL. Prof. Dr. SUPOMD SH. No. 10 JAKARTA 12870 Indonesia E-Mail Tel. Number Fax Education : : : : rubianto@dpmb.esdm.gov.id 62.21.8314585 62.21.828775 BSC in Geology, Academy of Geology and Mining Bandung, Indonesia (1977) M. Sc. in Coal Geology, University of Wollongong, N. S. W. Australia (1999) Work Experience : 1978 1979 Junior Geologist, Directorate of Environmental Geology 1980 1985 Geologist, Mineral Technology Development Center 1985 1997 Senior Geologist, Directorate of Coal 1997 2000 Head of Mining Support Section, Directorate of coal 2001 2003 Head, Logistic and Infrastructure Section Directorate of Mineral and Coal Enterprises 2004 Present Deputy Director, Mining Services, Directorate of Mineral and Coal Enterprises.