Utilization of Coal Energy in Indonesia Remains High Until 2060

ENERGY - JAKARTA. Indonesia's reliance on coal energy to meet its energy needs is projected to remain high and continue until 2060, according to the draft of the National Energy Policy Regulation (RPP KEN) currently being developed by the Ministry of Energy and Mineral Resources. 

The RPP KEN breaks down the use of final energy for coal energy every 10 years, starting from 2030 and extending to 2060. 

In 2030, the use of final energy for coal energy is expected to range between 58.6 million TOE (tonnes of oil equivalent) and 62.9 million TOE. 

By 2040, this range is projected to be between 85.8 million TOE and 87.8 million TOE. In 2050, it is expected to be between 79.5 million TOE and 81.8 million TOE. And by 2060, it is projected to be between 45.4 million TOE and 57.0 million TOE. 

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Regarding the targets in this draft, Djoko Widajatno, Acting Executive Director of the Indonesian Mining Association (IMA), suggests that these targets could potentially be met without opening new mining sites, given the long operational lifespan of current sites.

“It might be necessary, but the current operations can still work for 60 years,” he said when contacted by Kontan on Thursday (04/04).

He added that according to IMA records, there are 1,646 mining locations or potential coal sites spread across 23 provinces in Indonesia, with a total of 1,045 coal companies.  

Widajatno also noted that the use of final energy for coal energy from the RPP KEN remains high even until 2060. One of the reasons is the high number of coal-fired power plants in Indonesia and the slow development of New, Renewable, and Energy Conservation (EBTKE).                

                                                         

“Power plants that use coal in Indonesia still account for more than 65%. Then the development of EBTKE is still slow, currently from 2019 to 2023 it is only 13%, and the investment is still expensive because it requires purchasing the technology,” he revealed. 

However, meeting these targets at least until 2030 seems to be hindered due to some difficulties in submitting and approving the Work Plan and Budget (RKAB) with the new regulation.      

It should be noted that in September 2023, the Ministry of Energy and Mineral Resources released a new regulation, namely the Minister of Energy and Mineral Resources Regulation Number 10 of 2023. This regulation divides the RKAB into two, namely the RKAB Exploration Activity Stage for 1 year and the RKAB Production Operation Activity Stage which is prepared for 3 years.           

“Yes, but maybe in Q1 (first quarter) there will be a slight decrease (in production) due to delays in the Work Plan and Budget (RKAB), resulting in a decrease in production,” he concluded.