It is believed that the existence of coal as the primary energy for electricity generation in Indonesia still plays an important role amidst the widespread campaign to use new and renewable energy (EBT) in the current era of energy transition.
General Chair of the Indonesia Mining Association (IMA) Rachmat Makkasau said the use of coal using a clean and environmentally friendly process (clean coal process) must be maximized, to reduce CO2 emissions from coal. “For that we have to find a way Clean Coal Process, while still implementing EBT. If Clean Coal Process done and emissions can be reduced, even eliminated, there’s no problem, right?” he said deeply Seminar Energy for Prosperity : The Economic Growth Impacts of Coal Mining which was held by the Energy and Mining Editor Society (E2S) in Jakarta, Thursday (14/3).
Rachmat said that Indonesia is blessed with coal reserves and resources that can still be utilized for the next 200-500 years. National coal reserves currently reach 35 billion tons and resources are 134 billion tons.
It is estimated that this amount, he said, might be used for the next 500 years if done in the right way. Even if some of it is exported, national coal can be used for the next 200 years.
Rachmat said that currently coal is the cheapest energy compared to others. Moreover, the coal industry has taken various steps to reduce emissions.
He also envisions a time with a target of net zero emissions (NZE) until 2060 where industry has implemented it Carbon Capture, Utilization and Storage (CCUS), NOX emission capture technology (nitrogen oxide) and others, then using coal may not be a problem.
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“We imagine what would have happened to Indonesia if 50 years ago all PLTUs in Indonesia had no emissions, all the carbon that came out of the PLTUs was captured, sulfur NOX was captured then what would happen to coal, maybe there would be no problem,” said Rachmat.
Another speaker, Irwandy Arif, Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, said that national mineral and coal wealth reached US$ 4 trillion, two-thirds of which came from coal. “So the role of coal is actually big in the income we get,” he said.
According to Irwandy, the coal industry is overshadowed by the energy transition, so many people think that the role of coal will decline. In fact, almost all electricity generation in Java comes from coal energy.
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With the presence of EBT, the sustainability of coal is being questioned. In the usual scenario, until 2060, coal production will still reach 720 million tons. This depends on the development of EBT. Irwandy said that currently the government through the National Energy Council (DEN) has lowered the target for EBT utilization in 2025, from 23% to 17% because the current realization is only around 13%.
“So this is it business as usual. Then there is the next scenario NZE, it turns out that coal production in 2060 will still be 327 million tons. “So how long does this coal last, in my book it says it is still alive for approximately 40 years,” he said.
Irwandy said the challenge for coal is how to reduce CO2 emissions. The point is to protect the environment with a strategy of optimizing coal use and preventing CO2 emissions, so the concept emerged carbon pricing tradingreclamation , and so on.
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“Coal must implement Clean Coal Technology. There are already 13 PLTUs implementing USC and IGCC technology. “This is a positive thing because the technology is very expensive,” said Irwandy.
Meanwhile, the Executive Director of the Reforminer Institute, Komaidi Notonegoro, said that coal is linked to 76 supporting sectors out of around 186 supporting sectors in Indonesia.
“If there is an investment, 1 will produce 5.45 units. “This means that if there is IDR 1 trillion in investment, the added economic value is IDR 5.35 trillion, the range is there,” he said.
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Komaidi also revealed the important points of coal regarding electricity. If you look at the generation costs per KWh from the existing figures, coal is the cheapest, even in the fossil energy group.
“Most of our current electricity production is around 66.98% from coal. Try replacing PLTU with PLTS, the tariff will increase by 30 percent. Even in realization, if backup system “calculated, the costs are even higher,” he said.
Komaidi said it was necessary to be wise in looking at coal. Coal is indeed the dirtiest of all fossil energies, but what is changing the economic order and world energy transition is technology. If one day there is technology to reduce emissions, the coal problem will be over.
“We are participating in the energy transition, but our choice of method does not have to be dictated to by European countries. “We are an island country, there are many arguments why we should not force ourselves but still have to follow global flows,” he stressed. (Ant/M-3)
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