The Indonesian government relies heavily on coalmining to generate revenue It is the countrys largest export commodity creating about 15 of total export values In addition 60 of electricity generated in Indonesia comes from coal fired power plants.
The dominance of coal as a fuel is supported by conflicting interests of government officials with close ties to the coalmining industry.
For example Luhut Binsar Panjaitan served as the minister for maritime and investment while owning shares in the PT Toba Sejahtera Group Its subsidiaries include coalmining companies such as PT Toba Bara Sejahtera Tbk PT Admira Baratama Nusantara PT Indomining PT Trisensa Mineral Utama and PT Kutai Energi operating in East Kalimantan.
Nov 07 2019nbsp018332In the case of the South Sumatra railway Palembang and Bandar Lampung are two major coal ports and the railway has been built to extract coal from one of the biggest coal mining regions in the world The passenger service runs between the two southern provinces of South Sumatra and Lampung on the railways that coal mining built.
Erick Thohir the minister for state owned enterprises has a close relationship with coalmining company PT Adaro Energy Tbk the second largest producer of coal in Indonesia and the fourth largest in the world.
Following pressure from large players in the coal industry the Indonesian government reviewed and amended laws governing coalmining in May The new law allows any company holding a Coal Mining Company Works Agreement Perjanjian Karya Pengusahaan Pertambangan Batubara PKP2B to have its mining contract extended automatically after it expires.
In the next five years PKP2B contracts held by seven large coalmining companies are due to expire see table below Altogether these companies are contracted to extract about 203 million tonnes of coal per year for export on 3817 square kilometres of land more than five times the size of Jakarta.
Even as the international trend is to reduce coal use Indonesia provides huge opportunities and facilities for companies through the new Minerals and Coal Mining Law to extend PKP2B contracts permitting companies to continue to mine up to about 35 of the total national coal quota per year This translates to 206 million tonnes per year for 20 years or 30 years if the coal mine has a power plant attached.
Nov 05 2018nbsp018332Most of Indonesias coal mining happens in Borneo and South Sumatra Positive and Negative Effects Coal power plants are necessary for electricity generation in an era where many activities are driven by power Coal power plants however contribute massively to environmental pollution while mining of the resource degrades the environment.
Jun 24 2009nbsp018332A gas explosion at a coal mine in the Sawahlunto district of West Sumatra on June 16 killed at least 32 people The tragedy is the outcome of the.
Jul 28 2020nbsp018332Even as the international trend is to reduce coal use Indonesia provides huge opportunities and facilities for companies through the new Minerals and Coal Mining Law to extend PKP2B contracts permitting companies to continue to mine up to about 35 of the total national coal quota per year This translates to 206 million tonnes per year for 20 years or 30 years if the coal mine.
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