Demand for Coal – Coal is still the largest energy used to produce electricity generation. However, the coal market tends to decline in the long term. This is influenced by the acceleration of net zero carbon initiatives.
The decrease in Coal Demand Reaches 25%
The Director-General of Mineral and Coal (Minerba) of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin said that the global projection will decrease coal demand by 25% in 2035 and 40% in 2050.
Coal Production Increasing
Based on the forecast for coal production plans, it is projected that coal production will increase in line with the increasing demand for coal in the country.
Coal’s energy mix is still large, but the portion will be smaller. We will also continue to ensure that in our country there are no shortages, “he said in the Bimasena Energy Dialogue webinar.
Indonesia Has Large Coal Reserves
He continued, Indonesia has large coal resources and reserves as well as the potential for coal downstream products that can substitute fuel (BBM and BBG), and Chemical Industry Raw Materials.
In this case, the government encourages the downstream of coal to be able to substitute fuel (BBM and BBG), and raw materials for the chemical industry, including methanol and dimethyl ether (DME).
Currently, there are 2 coal gasification projects in Indonesia that have been designated as National Strategic Projects (PSN), namely Coal to DME Gasification in Tanjung Enim (PT Bukit Asam) and Coal to Methanol Gasification in East Kalimantan (Bumi Resource – Ithaca Group – Air Product).
Indonesia’s Coal Reserves Are Low Calories
Meanwhile, in the upstream sector, the government is preparing regulatory support for the acceleration of coal downstream in the form of 0% coal royalty incentives, special prices for coal for downstream, and a special period of time for coal IUP / IUPK for coal supply used for coal downstream according to the economic age.
We are based on the fact that 90% of our coal reserves are low calorie and moderate calories, so our choice to go downstream is a very realistic choice.