Strategic Policies Improve Performance of Mineral and Coal Subsector, Official Says

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 468.Pers/04/SJI/2021

Date: 21 December 2021

Strategic Policies Improve Performance of Mineral and Coal Subsector, Official Says

In a pandemic situation that is starting to get under control, the performance of the mineral and coal subsector has shown improvement through strategic policies, Special Advisor to the Minister of Energy and Mineral Resources (EMR) for the Acceleration of Mineral and Coal Governance, Irwandy Arif, has said in the opening of the Minerba Virtual Fest 2021 on Tuesday (21/12).

"The strategic policies include a policy to prioritize the use of coal to maintain domestic security of energy, especially for power generation, and a policy to increase mineral added value, especially nickel, which is one of the supporting materials for electric vehicle battery," Irwandy added.

In accordance with the mandate of Law Number 3 of 2020 on Amendments to Law Number 4 of 2009 on Mineral and Coal Mining, the government has continued to promote programs to increase the added value of minerals in the country so that these minerals can provide maximum benefits to Indonesia's economic growth and develop a strong and competitive national industry.

Irwandy also said that mineral commodities, both metallic and non-metallic, have enormous potential to be used as energy sources. "For example, radioactive minerals (uranium and thorium) can be used to produce clean energy (nuclear energy). Several other minerals are important components for energy storage, for example to be used in batteries, and so on," explained Irwandy.

Other mining commodities, such as coal, also play a very strategic role in promoting energy sovereignty and independence as well as increasing the competitiveness of the national economy.

"The use of coal opens up opportunities for regional development and creates jobs. With coal downstreaming program such as gasification, we hope to gain more benefits or added value from low-calorie coal that Indonesia has in abundance. Thus, the program can support energy sovereignty and independence," said Irwandy.

In a similar vein, the Director General of Mineral and Coal, Ridwan Djamaluddin, said that the mining industry had continued to contribute to national development. For example, Ridwan revealed that during the Covid-19 pandemic, areas with quite stable growth were those which economic activities were based on mining industry. However, this condition must be improved by reforming public services.

"The Directorate General of Mineral and Coal is also trying to improve our services. What we've been doing so far is communication--we try to provide services with full dedication. Indeed, there are issues that we still have to improve, especially removing bureaucratic obstacles," Ridwan said.

Ridwan also emphasized the need to involve local communities in the mining industry, for example by engaging them to provide facilities to meet the needs of the mining industry.

"Local communities can also supply the daily needs of mining industry. President Joko Widodo in his speech said that the locals should not be made as spectators. I think this is an important message that we need to respond to in the mining industry. This way, the surrounding communities can get involved as much as possible," said Ridwan.

On this occasion, Ridwan also emphasized that illegal drilling (PETI) could damage the environment and harm the country. For this reason, the formalization of small-scale, community mining would be encouraged.

"Let's work together to reduce illegal mining to a minimum. It damages the environment and harms the country, and the people who make a living this way do not have a blessing and lawful life. Let's fight illegal mining by mobilizing all available resources. We will facilitate community groups who wish to do business legally in the mining industry through formalization. To recover the economy after the pandemic, let's maximize the coal mining industry and minimize negative impacts," Ridwan concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

Share This!