Jakarta – Black gold, that’s the nickname for coal. Formed from the sediment of ancient plant remains that have experienced pressure and heating for millions of years, coal has various benefits, especially as an energy source that builds civilization.
The 79th Mining and Energy Day, which will be commemorated on September 28, 2024, is the right moment to see the important role of coal for Indonesia’s national energy security.
Although the government is pursuing a carbon neutral emission (NZE) target, it is undeniable that coal is still the mainstay energy source in Indonesia, with the largest contribution compared to other energy sources. Data from the National Energy Council (DEN) in 2023 shows that the percentage of the national energy mix is still dominated by coal, which is 40.5%.
The reason coal is a ‘prima donna’ is because of its abundant availability, making it easy to obtain. In addition, the price is affordable, which makes many countries, including Indonesia, rely on coal to meet the electricity needs of the community.
As is known, Indonesia uses various types of fuel to produce electricity supply. Of all energy sources, the use of coal is said to be the most efficient in terms of cost.
Based on PLN statistical data in 2020, the average generation cost of a coal-based Steam Power Plant (PLTU) is only IDR 636.55 per kWh. Much more economical than the electricity production cost of a Diesel Power Plant (PLTD) based on Fuel Oil (BBM), with a price range of IDR 4,746.32 per kWh.
In fact, when compared to the average generation cost of a Gas Power Plant (PLTG) of IDR 1,611.79 per kWh, coal is still more economical.
In other countries, such as Italy, which relies on oil and gas imports as its country’s electricity source. With high taxes, Italian citizens must pay Rp 12,012 or around US$ 0.789 per kWh.
Other countries such as Austria, which uses water, wind and solar energy as electricity sources, have a tariff of Rp 10,627 per kWh. Meanwhile, Belgium, which uses nuclear as its main source of power, sets a tariff of Rp 9,926 per kWh.
In Indonesia, the current average tariff for non-subsidized household customers ( tariff adjustment ) is IDR 1,445 per kWh. This tariff is much cheaper than household electricity tariffs in Thailand which reach IDR 1,597 per kWh, Vietnam IDR 1,532 per kWh, Singapore IDR 2,863 per kWh, and the Philippines IDR 2,421 per kWh.
Meanwhile, for the Medium Business-TR class, electricity rates in Indonesia are set at IDR 1,445 per kWh, still cheaper than in the Philippines at IDR 1,636/kWh, Malaysia at IDR 1,735/kWh, Vietnam at IDR 1,943/kWh, and Singapore at IDR 2,110/kWh. Indonesia’s rates for this class are only slightly above Thailand at IDR 1,413/kWh.
The availability of affordable electricity is certainly important for the national economy. Imagine if there was no coal, the government would have difficulty providing electricity to the community, especially the lower class. Not only that, the issue of electricity rates is not impossible to disrupt socio-political stability in the country.
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Bukit Asam (PTBA) Helps Maintain National Energy Security
According to data from the Directorate General of Mineral and Coal of the Ministry of Energy and Mineral Resources, total domestic coal consumption in 2023 will be 212.9 million tons. PT Bukit Asam Tbk (PTBA), a member of the BUMN Mining Industry Holding MIND ID, also contributes to national energy security by prioritizing supply for domestic needs.
This can be seen from the increase in PTBA’s coal supply for domestic needs, especially electricity. PTBA’s Domestic Market Obligation (DMO) realization has always exceeded the target set at 25% of the current year’s coal production realization.
PTBA’s coal DMO realization continues to increase. In 2020, PTBA’s DMO realization was 14.13 million tons from a total production of 24.84 million tons. Then in 2021, DMO realization was 16.11 million tons from a production of 30.04 million tons. In 2022, DMO realization was 19.17 million tons from a production of 37.14 million tons. DMO realization increased again in 2023, namely 21.4 million tons from a production of 41.9 million tons.
Meanwhile, DMO realization in Semester I 2024 was 11.57 million tons, growing 12 percent compared to the same period the previous year.
“The Ministry of SOEs encourages all SOEs to increase their role as development agents. To that end, PTBA is taking a role to consistently help strengthen national energy security,” said Corporate Secretary of PT Bukit Asam Tbk (PTBA), Niko Chandra.
In its efforts to maintain national energy security, PTBA also makes innovations to reduce the environmental impacts caused by mining activities. In line with PTBA’s vision to become a world-class energy company that cares about the environment, the principles of Good Mining Practice are implemented consistently. Here are some of PTBA’s efforts in implementing the best mining practices:
Bukit Asam (PTBA) Helps Maintain National Energy Security
According to data from the Directorate General of Mineral and Coal of the Ministry of Energy and Mineral Resources, total domestic coal consumption in 2023 will be 212.9 million tons. PT Bukit Asam Tbk (PTBA), a member of the BUMN Mining Industry Holding MIND ID, also contributes to national energy security by prioritizing supply for domestic needs.
This can be seen from the increase in PTBA’s coal supply for domestic needs, especially electricity. PTBA’s Domestic Market Obligation (DMO) realization has always exceeded the target set at 25% of the current year’s coal production realization.
PTBA’s coal DMO realization continues to increase. In 2020, PTBA’s DMO realization was 14.13 million tons from a total production of 24.84 million tons. Then in 2021, DMO realization was 16.11 million tons from a production of 30.04 million tons. In 2022, DMO realization was 19.17 million tons from a production of 37.14 million tons. DMO realization increased again in 2023, namely 21.4 million tons from a production of 41.9 million tons.
Meanwhile, DMO realization in Semester I 2024 was 11.57 million tons, growing 12 percent compared to the same period the previous year.
“The Ministry of SOEs encourages all SOEs to increase their role as development agents. To that end, PTBA is taking a role to consistently help strengthen national energy security,” said Corporate Secretary of PT Bukit Asam Tbk (PTBA), Niko Chandra.
In its efforts to maintain national energy security, PTBA also makes innovations to reduce the environmental impacts caused by mining activities. In line with PTBA’s vision to become a world-class energy company that cares about the environment, the principles of Good Mining Practice are implemented consistently. Here are some of PTBA’s efforts in implementing the best mining practices:
1. Artificial Wetland Innovation
PTBA also innovates by developing constructed wetlands in coal mines. The goal is to eliminate pollutants such as heavy metals, while encouraging ecosystem restoration efforts.
The application of constructed wetland in PTBA includes two models, namely floating wetland system and swampy forest . Floating wetland is an innovation of PTBA by using PVC pipe as a floating construction above a pool containing acid mine water. The pipe is filled with organic materials in the form of bokashi and tankos fertilizer, then planted with plants to absorb heavy metals. The roots of the plants will extend to the acid mine water and absorb heavy metal elements. The swampy forest model combines aquatic plants with types of swamp plants.
Various plants are used to absorb heavy metal content in the form of iron (Fe) and manganese (Mn), namely Akar Wangi ( Vetiveria Zizanioides ), Water Jasmine ( Echinodorus Palaefolius ), Lonkida ( Nauclea Orientalis ), Jelutung Rawa ( Dyera Costulata ), Balangeran ( Shorea Balangeran ), Gelam ( Melaleuca Leucadendron ), Eucalyptus ( Melaleuca Cajuputi ).
2. Electrification of Mining Vehicles
PTBA’s best mining practices are also reflected in its mining vehicle electrification program. PTBA operates dozens of electric vehicles and buses for mining activities to save fuel usage while reducing carbon emissions.
Currently, PTBA has operated 7 units of Electric Shovel (PC3000-6E), 40 units of Hybrid Dump Truck (Belaz-75135), and 6 electric-based Mining Pumps. The use of these electric-based mining tools results in savings of up to 7 million liters of diesel fuel per year and reduces emissions by 19,777 tCO2e.
In addition, PTBA has operated 5 electric buses at Tarahan Port and 10 electric buses at Tanjung Enim Mining Unit. In total, PTBA has operated 15 electric buses. The reduction in carbon emissions is estimated to reach 16 tons of CO2/year/bus. In addition, the use of electric buses reduces fuel consumption by up to 9,672 liters/year/bus.
3. Mining Digitalization
Not only the use of electric-based mining vehicles and tools, PTBA also continues to boost digitalization in mining operations. PTBA has a CISEA ( Corporate Information System and Enterprise Application ) application that can monitor all operational activities, from production in mining to ports in real time via mobile phones.
It is known that CISEA integrates several systems at once, making it possible to perform software maintenance, troubleshooting remotely. In addition, it facilitates data analysis more accurately, because all operational data is stored automatically.
CISEA was first developed in October 2019 and officially launched in March 2020. In 2021, PTBA successfully obtained the trademark and copyright for CISEA, and finally in 2024 obtained the patent.
Thanks to the efforts of digital operational transformation, PTBA has also been awarded a number of awards. Not stopping there, PTBA also continues to spur innovation and adapt in order to provide non-stop energy for Indonesia. PTBA’s presence in this country is a light for the nation and continues to maintain sustainable energy security.