Optimizing the utilization of coal in Indonesia through downstreaming: Economic benefits, challenges and solutions
DOI:
https://doi.org/10.61511/emagrap.v2i2.2025.1472Keywords:
coal, downstreaming, environmental sustainability, global, optimizationAbstract
Background: This study delves into the strategic optimization of coal resources in Indonesia through downstreaming, aiming to contribute to sustainable and value-driven utilization of the country's mineral wealth. The research highlights the benefits of downstreaming, including increased economic value and state revenues, while acknowledging the challenges such as environmental impacts and the need for advanced technologies. Methdos: This qualitative study analyzed coal utilization efficiency through downstream strategies, gathering insights from seven key informants in the coal sector. Data was collected via document analysis of EIA/ESIA reports, relevant regulations, and guidelines. A qualitative comparative analysis and descriptive methods were employed to identify patterns and challenges in coal beneficiation, focusing on stakeholders' views on the issue. Findings: The slow progress of coal downstreaming in Indonesia is attributed to financial constraints, technological complexity, and unclear regulations, despite government incentives. Strengthening collaboration between mining and energy production companies is key to improving coal utilization. Increased government support and commitment are needed to attract financial backing for downstream projects. Additionally, ongoing technical and economic studies on coal conversion for secondary and tertiary energy sources are essential to ensure energy availability, affordability, and sustainability. Conclusion: The study emphasizes the importance of collaboration between mining companies, downstream companies, and the government, as well as the implementation of supportive regulations and incentives to encourage coal downstreaming. Overall, the study provides strategic recommendations for Indonesia to enhance the efficiency and responsible utilization of its coal resources through downstreaming. Novelty/Originality of this article: This study underscores the strategic importance of coal downstreaming in Indonesia, highlighting its economic potential, environmental challenges, and the need for collaboration and supportive policies to ensure sustainable resource utilization.
References
Afkarina, Kunny Izza Indah, Wardana, Sindung, Damyati, Poerborini. (2019). Coal Mining Sector Contribution to Environmental Coniditons and Human Development Index in East Kalimantan Procince. Journal of Environmental Science and Sustainable Development 2 (2): 192-207. https://doi.org/10.7454/jessd.v2i2.1025
Aimon, Hasdi et al. (2023). Production, Consumption, Export and Carbon Emission for Coal Commodities: Cases of Indonesia and Australia. International Journal of Energy Economis and Policy. Mersin, Bol 13. Iss5, 484-492. https://doi.org/10.32479/ijeep.14798.
Anugrah, Iqra. (2023). Land Control, Coal Resource Exploitation and Democratic Decline in Indonesia. TRaNS: Trans-Regional and-National Studies of Southeast Asia, 11. https://doi.org/10.1017/trn.2023.4P
Bisnis. (2023). “Bukit Asam (PTBA) Lirik Investor China Garap DME Gantikan Air Products”Kamis. 15 Juni 2023. https://market.bisnis.com/read/20230615/192/1666004/bukit-asam-ptba-lirik-investor-china-garap-dme-gantikan-air-products.
Bossner, Stefan. (2023). A just coal transition in Indoensia: actors, framings and future directions. Jakarta: Stockholm Environment Institute and Institute for Essential Services Reform.
Chenghao, Wang & Yuanping, Cheng. (2023). Role of coal deformation energy in coal and gas outburst: A review. Fuel. Volume 332, Part 1, https://doi.org/10.1016/fuel.2022.126019
Fang, Zhang et al. (2023). When green recovery fails to consider coal pushback: Exploring global coal rebounds, production, and policy retrenchment post Covid-19. Energy Research & Social Science. Volume 101, July. 103142. https://doi.org/10.1016/j.erss.2023.103142
Handoko, Slamet (2023). Hilirisasi Batubara Solusi Transisi Energi (Peluang, Tantangan, dan Kendala). Webinar “Hilirisasi Batubara Solusi Transisi Energi Balai Pendidikan dan Pelatihan Tambang Bawah Tanah” Kementerian ESDM
Kontan (2023). “Ini Penyebab Hilirisasi Batubara Masih Hadapi Sejumlah Tantangan” Rabu, 29 November. Ini Penyebab Hilirisasi Batubara Masih Hadapi Sejumlah Tantangan (kontan.co.id).
Lim, N et al (2021). Achieving Sustainable Energy Security in Indonesia Through Subsitution of Liquefied Petroleum Gas with Dimethyl Ether as Household Fuel. Indonesian Journal of Energy, 4 (2), 71-86. https://doi.org/10.33116/ije.v412.100
Manullang, Gistyger Hasudungan & Isnarti, Rika. (2023). China’s Energy Diplomacy to Coal Imports from Indonesia After Restricting Coal Import from Australia in 2019. Indonesian Journal of Energy. Vol 6 No 2. https://doi.org/10.33116/ije.v6i2.172
Muttitt, Greg et al (2023). Socio-political feasibility of coal power phase-out and its role in mitigation pathways. Nature Climate Change 13, 140-147. https://doi.org/10.1038/s41558-022-01576-2
Nasir, Mohamad et al. (2023). Environmental Management of Coal Mining Areas in Indonesia: The Complexity of Supervision. Society and Natural Resources, Volume 36, Issue 5. https://doi.org/10.1080/08941920.2023.2180818
Ordonez, Jose Antonio et al . (2022). Coal vs. Renewables: Least-cost optimization of the Indonesian power sector. Energy for Sustainable Development, 68, 350-363. https://doi.org/10.1016/j.esd.2022.04.017
Pambudi, Nugroho Agung et al (2023). Renewable Energy in Indonesia: Cureent Status, Potential, and Future Development. Sustainability, 15)3), https://doi.org/10.3390/su15032342
PLN Energi Primer Indonesia. (2023). ”Strategic Role of Coal to Meet Energy Transition Policy.” Paper.
Rasimeng, Syamsurijal. (2019). Lembar Plagiarism: Identification of Eroded Sediment Layer Thickness and Depth of Mahakam River at Tenggarong Bridge Area, Kutai Kartanegara East Kalimantan Using Ground Penetrating Radar Method.” IOP Conference Series: Earth and Environmental Science.
Ragimun & Rosjadi, Imran, (2020). Fiscal incentive policy for coal downstreaming in Indonesia. International Conference on Advanced Mechanical and Industrial engineering. IOP Conf. Seris: Materials and Engineering, 909, 012055. https://doi.org/10.1088/1757-899X/909/1/012055
Rahman, Arief et al (2023). Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization. Renewable Energy. Volume 202, Pages 1305-1323. https://doi.org/10.1016/j.renene.2022.11.051
Rosyid, Fadhila Achmadi & Adachi, Tsuyoshi. (2018). Optimization on long term supply allocation of Indonesian coal to domestic market. Energy Syst. 9: 385-414. https://doi.org/10.1007/s12667-017-0229-9
Saria, Lana. (2023). “Peluang dan Tantangan Pengusahaan Batubara dalam Transisi Energi”. Paper presented A seminar on the Strategic Role of Coal in Energy Transitionin Energy, December 15th organized by Energy and Mining Editor Society.
Setiawan, Eko N., Ahmad Maryudi, Ris H. Purwanto, and Gabriel Lele. 2016. “Opposing Interests in the Legalization of Non-Procedural Forest Conversion to Oil Palm in Central Kalimantan, Indonesia.” Land Use Policy 58:472–81. https://doi.org/10.1016/j.landusepol.2016.08.003
Vilakazi, Amanda Qinisile et al (2022). The Recycling of Coal Fly Ash: A Review on Sustainable Developments and Economic Considerations. Sustainability, 14 (4), 1958. https://doi.org/10.3390/su14041958
Wang, Qiang et al (2023). Highly Efficient Co2 Capture and Utilization of Coal and Coke-Oven Gas Coupling for Urea Synthesis Process Integrated with Chemical Looping Technology: Modelling, Paramater Optimization, and Performance Analysis. Processes, Vol 11, 960. https://doi.org/10.3390/pr11030960
Wollff, Ian. (2023)12-Coal resources, production, and use in Indonesia. The Coal Handbook; Towards Cleaner Coal Utilization. Volume 2, pages: 361-430. https://doi.org/10.106/B978-0-12-824327-5.00008-9.
Xue, Jin. 2022. “Urban Planning and Degrowth: A Missing Dialogue.” Local Environment 27(4):404–22. https://doi.org/10.1080/13549839.2020.1867840
Yasin, CM et al. (2021). Implementation of Indonesia coal downstream policy in the trend of fossil energy transition. International Seminar on Mineral and Coal Technology. IOP Conf. Series: Earth and Environmental Science 882. 012083. https://doi.org/10.1088/1775-1315/882/1/012083
Yudiartono et al. (2023). Sustainable Long-Term Energy Supply and Deamand: The Gradual Transition to a New and Renewable Energy System in Indonesia by 2050. International Journal of Renewable Energy Development, Vol 12, Issue 2, p: 419-429.
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Economic Military and Geographically Business Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
