Ecobiz.asia – The Association of Indonesian Energy, Mineral, and Coal Suppliers (ASPEBINDO), emphasized the strategic role coal plays in meeting Indonesia’s energy needs to support national industrial development.
ASPEBINDO hopes that under the new administration of President-elect Prabowo Subianto, there will be a greater focus on harmonizing energy policies that prioritize sustainability and investment certainty in the mining sector.
“We hope that with the new president’s leadership, there will be a stronger emphasis on energy policy harmonization that considers sustainability and ensures investment certainty in the mining sector,” said Anggawira, Chairman of ASPEBINDO, in an interview with Petromindo.com on Monday (23/09/2024) when asked about the organization’s expectations for national energy needs under the new president.
“Policies that support coal downstreaming and increase the capacity of more environmentally friendly coal-fired power plants must continue to be encouraged,” Anggawira added.
In 2023, Indonesia’s coal production reached 775 million tons, with 171.5 million tons allocated for domestic use.
The demand for domestic coal has been steadily increasing, and according to reports from the Ministry of Energy and Mineral Resources (MEMR), national coal production is expected to reach 922 million tons this year, followed by 917 million tons in 2025, and 902 million tons in 2026.
Domestic coal demand is projected to range between 181-220 million tons this year, driven by power generation needs and the operations of key industries such as smelting, cement, and textiles.
“ASPEBINDO believes that the stability of coal supply and pricing is crucial to ensuring the competitiveness of domestic industries, both in terms of operational costs and sustainable production,” Anggawira added.
In addition to coal, ASPEBINDO is pushing for the optimization of Liquefied Natural Gas (LNG) as an alternative energy source to support the transition to cleaner and more environmentally friendly energy sources.
“ASPEBINDO supports the energy transition toward cleaner and more sustainable sources. We see that LNG can play a significant role in this transition without sacrificing the stability of the national energy supply. LNG has great potential to reduce carbon emissions in the industrial and power sectors while maintaining the competitiveness of domestic industries,” Anggawira said.
Data from MEMR presented in 2023 showed that Indonesia had 304.6 uncommitted LNG cargoes out of a total production plan of 432.6 cargoes. ASPEBINDO hopes that the incoming government will maximize the role of LNG in the national energy mix, particularly in industrial sectors that require stable and reliable energy.
“We hope the next government will optimize the potential of LNG in the national energy mix, especially in industrial sectors that require high energy stability with a lower environmental impact. Cooperation between institutions and increased investment in LNG infrastructure are also key factors that need attention to ensure that this energy transition proceeds effectively and efficiently,” he added.
ASPEBINDO which represents more than 100 companies, has been an extraordinary member of the Indonesian Chamber of Commerce (KADIN) since 2011. Its members include trading companies, coal mining companies, and businesses involved in energy, ranging from oil and gas to renewable energy.
“A close collaboration between the government, industry players, and relevant institutions must be strengthened to ensure affordable energy availability for the industrial sector. This includes ensuring adequate coal allocation for domestic needs (Domestic Market Obligation/DMO) while promoting LNG as a solution for a clean and sustainable energy transition. This will ensure energy stability and foster inclusive and sustainable national economic growth,” Anggawira concluded. ***