Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Kartini L. Makmur, Andin Aditya Rahman
The Government plans to apply a nation-wide limit on coal exports next year by establishing an export quota for every regency and municipal government.
This policy aims to support coal supply for domestic steam power plants in order to satisfy national electricity demand and prevent power outages—a frequent occurrence in Indonesia, especially outside Jakarta.
“This production limitation aims to prevent massive exploitation in pursuing profits amidst low market prices,” explained R. Sukhyar, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) on Monday.
Further, Mr. Sukhyar said that most coal produced in Indonesia is exported. For instance, during 2013, only 20 percent of total coal production was used domestically covering both electricity generation and industrial purposes, amounting to 65 million tones of the 420 million tonnes that were produced.
“To pursue cashflow, companies have been ramping up their production rates. We must not let coal production get out of hand,” added Mr. Sukhyar.
Ironically, domestic demand for coal is steadily increasing in order to provide coal supply for steam power plants. In light of this need for coal, Mr. Sukhyar asserted that his institution will prioritize domestic consumption over exports to overcome the national electrical power crisis.
“We need an additional 6,000 MW of electricity annually. The Fuel with the greatest contribution is coal, and so we will prioritize it, while we continue to also suppress oil consumption,” he said.
Despite the plan to decrease coal exports, the Government remains confident that there will be no decline of state income in this sector. Mr. Sukhyar even admitted that there was a significant increase in state revenue in the coal sector, primarily due to hurried coal royalty payments.
“State revenue from coal royalties has reached IDR 11 trillion. This increase is more than twice as much when compared to the same period last year, which amounted to IDR 5 trillion,” boasted Sukhyar.
In regard to mining royalties, Paul Lubis, Director of Program Planning at the ESDM, stated that his institution has cooperated with the Corruption Eradication Commission (KPK)to fix issues related to management in the mining sector, focusing on pressuring mining license holders to pay royalties, fees, and other payments to the Government.
“If they fail to pay within 6 months, they will be handed over to law enforcers. We are certain that in the next 6 months, the Government’s rights will be restored in full,” declared Mr. Lubis.
According to Mr. Lubis, if royalty revenues continue on the same trend, state revenue from coal royalties will reach IDR 44 trillion, which is almost twice the amount earned last year of IDR 24.4 trillion.
(hot/kc)
Kartini L. Makmur, Andin Aditya Rahman
The Government plans to apply a nation-wide limit on coal exports next year by establishing an export quota for every regency and municipal government.
This policy aims to support coal supply for domestic steam power plants in order to satisfy national electricity demand and prevent power outages—a frequent occurrence in Indonesia, especially outside Jakarta.
“This production limitation aims to prevent massive exploitation in pursuing profits amidst low market prices,” explained R. Sukhyar, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) on Monday.
Further, Mr. Sukhyar said that most coal produced in Indonesia is exported. For instance, during 2013, only 20 percent of total coal production was used domestically covering both electricity generation and industrial purposes, amounting to 65 million tones of the 420 million tonnes that were produced.
“To pursue cashflow, companies have been ramping up their production rates. We must not let coal production get out of hand,” added Mr. Sukhyar.
Ironically, domestic demand for coal is steadily increasing in order to provide coal supply for steam power plants. In light of this need for coal, Mr. Sukhyar asserted that his institution will prioritize domestic consumption over exports to overcome the national electrical power crisis.
“We need an additional 6,000 MW of electricity annually. The Fuel with the greatest contribution is coal, and so we will prioritize it, while we continue to also suppress oil consumption,” he said.
Despite the plan to decrease coal exports, the Government remains confident that there will be no decline of state income in this sector. Mr. Sukhyar even admitted that there was a significant increase in state revenue in the coal sector, primarily due to hurried coal royalty payments.
“State revenue from coal royalties has reached IDR 11 trillion. This increase is more than twice as much when compared to the same period last year, which amounted to IDR 5 trillion,” boasted Sukhyar.
In regard to mining royalties, Paul Lubis, Director of Program Planning at the ESDM, stated that his institution has cooperated with the Corruption Eradication Commission (KPK)to fix issues related to management in the mining sector, focusing on pressuring mining license holders to pay royalties, fees, and other payments to the Government.
“If they fail to pay within 6 months, they will be handed over to law enforcers. We are certain that in the next 6 months, the Government’s rights will be restored in full,” declared Mr. Lubis.
According to Mr. Lubis, if royalty revenues continue on the same trend, state revenue from coal royalties will reach IDR 44 trillion, which is almost twice the amount earned last year of IDR 24.4 trillion.
(hot/kc)