Government prioritized a number of Coal and Mineral Policies

Minister of Energy and Mineral Resources Arifin Tasrif said that Indonesia has enormous mineral and coal potential and plays an important role in economic growth, as well as national industrial independence and resilience.

Arifin said, the current government is prioritizing several mineral and coal policies, including increasing exploration of mineral and coal reserve resources, including the potential for rare earth metals and critical minerals. Apart from that, reclamation and post-mining, business certainty and ease of investment, increasing the Domestic Component Level, and increasing added value by paying attention to environmental aspects.

“Increasing the added value of minerals has an important role in supporting the energy transition in Indonesia, including being used as raw material for solar, wind and nuclear plants; transmission and distribution cables; as well as batteries for electric vehicles and EBT power plants,” added Arifin representing Indonesian President Joko Widodo at the Indonesia Mining Summit in Bali, Tuesday (10/10).

Arifin also conveyed the downstream strategy that is being pushed by the Government. This includes efforts to accelerate supply chain integration between mines and smelters.

“Then there is the integration of industries that use processed mineral materials and the development of advanced industries, and applications from the results of processing or refining minerals. Some of the main commodities that are priorities for development include Nickel, Aluminum, Copper, Tin, Iron and Gold-Silver,” continued Arifin .

On that occasion, Arifin also said that mining would also be required to produce low or no emission products. Meanwhile, we still depend on fossils, especially coal. “We have to think about how we can gradually shift from heavy emissions to low emissions until finally zero emissions,” he said.

Then, in mineral and coal mining activities, said Arifin, it is necessary to pay attention to Environmental, Social and Governance (ESG) principles. Where environmental principles are implemented through environmental management and monitoring; post-mining reclamation; transformation of ex-mining land into other energy sources (PLTS, bioenergy) and encouraging the use of renewable energy in mining production activities.

“Furthermore, social principles are implemented through the Community Development and Empowerment program, prioritizing local mining service companies, local contractors and local workers. Governance principles are implemented through the regulation of IUP holders, share ownership and organizational structure,” said Arifin.

Apart from that, the Government also continues to improve mineral and coal mining business activities which are implemented through national mining governance, alignment with national interests, legal certainty and ease of investment, environmental management, and law enforcement.

“With the large potential of minerals and coal, and the availability of wide open market opportunities, as well as certainty in policies and regulations, the Government encourages business actors to invest in downstream minerals and coal,” said Arifin.

Meanwhile, General Chair of the Indonesia Mining Association (IMA) Rachmat Makkasau said that currently 27 new smelters are operating. In the 2024-2025 period, the mining smelter will operate optimally.

“The government’s program in the mining downstream sector has been going well with the smelters being built. Our task, the government and industry, in the future is to see how the raw materials and reserves prepared for industrialization can be managed properly,” said Rachmat.

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Source: Kebijakan Bidang Minerba Ini Jadi Prioritas Pemerintah