Energy Security in IndonesiaSupply & Demand Trends andOutlook
Presented for “Energy Security with Decarbonization Symposium 2024”
Directorate of Mineral and Coal Program Development
Directorate General of Mineral and Coal

3 September 2024

TOPIC
1.
1 The Role of Coal in Energy Economy and Society
2.
2 Energy Transition and Energy Mix Achievements21. The Role of Coal in Energy Economy and Society

3

CURRENT CONDITION
significant potential of renewable energy (RE) primary energy mix is stillsources, utilization remains relatively low
dominated by fossil fuels

Coal reserves are plentifulRESOURCES
97,3RE

12,3%

Billion ton

COAL
42,4%

2022

31,7OilBillion ton

31,4%

§

It has utilized 0.3% of the total potential, making theopportunities for renewable energy (RE)development wide open, especially supported byenvironmental issues, climate change, and theincrease in per capita electricity consumption..
In addition to renewable energy, the existing potentialof new energy sources is still underdeveloped.

Remaining Coal Reserve Life: 60 years(production rate: 600 million tons/year))

Natural Gas

Ket: *) Realisasi Mei 2023
Potensi Nuklir: Uranium 89.483 ton - Thorium 143.234 ton§

Sumber Badan Geologi, 2023

13,9%

Sumber : Ditjen EBTKE, 2023§
Sumber : DEN, 2023§§§

RESERVES

Coal still dominates the national energy
utilization sector.
The use of RE as an environmentally friendly
energy source is still low.
The role of coal needs to be adjusted inrelation to future coal usage strategies tosupport carbon emission reductions.

§Coal remains the main energy source inIndonesia for the next 10 to 20 years,
given that Indonesia's coal resources andreserves are still quite abundant.
Coal is considered a relatively cheap andaffordable energy source compared toother energy sources.

4

COAL RESOURCES AND RESERVES

Sumber Data: Badan Geologi 2023 (rilis 2024, diolah)"Significant contribution to Indonesia's energy landscape through abundant coal resources andreserves. In 2023, Indonesia's total coal resources amounted to 97.3 billion tons, and reserves reached31.7 billion tons with diverse caloric values."
5

COAL PRODUCTION
800.000.000

Coal Production Development from 2012 to 2022

663 Million

700.000.000

Coal Production, Ton

600.000.000
500.000.000
400.000.000
300.000.000200.000.000
100.000.000-

2012
Rencana Produksi 342.000.00
Realisasi Produksi 386.077.35

2013
390.000.00
474.371.36

2014
400.000.00
458.096.70

2015
425.000.00
461.566.08

2016
419.000.00
456.197.77

2017
413.000.00
461.248.18

2018
485.000.00
557.772.94

2019
489.100.00
616.159.59

2020
550.000.00
563.728.25

2021
625.000.00
613.990.25

2022
663.000.00
687.400.00

Sumber: Handbook of Energy & Economis Statistic of Indonesia, 2021; Buku Saku ESDM, 2022
6

Export-to-Production Ratio of Global Coal Producing
Countries
0,80,80,80,70,70,80,70,70,70,70,70,60,60,60,60,30,30,30,30,20,20,20,20,20,20,0-

0,0-

0,0-

0,0-

0,0-

2019

2020

2021

2022

2023

China

India

Indonesia

America

Australia

Rusia

South Africa

Kazakshtan

JermanPolandia

1. The highest coal export-to-production ratios
are held by Australia, Indonesia, and Russia.
In other words, the higher the export ratio,
the more coal is exported compared to what
is utilized domestically.
2. Meanwhile, the lowest ratios are in China,
India, Germany, and Poland. These countries
use all their production to meet domestic
needs.
3. The ratio between exports and domestic use
for Indonesia is 0.6 and has relatively
decreased since 2020, indicating that coalmining businesses tend to prioritize thedomestic market.
4. So far, coal remains a cheap energy source,
and renewable energy (RE) has not been able
to meet domestic energy needs. Theintermittent nature of RE and its high cost arechallenges. If coal production control is not
implemented, energy will become scarce andvery expensive in the future.

Sumber Data : Statistical of World Energy, 2024 (diolah)
7

ECONOMIC AND SOCIAL IMPACT OF COAL
Supporting the nationaleconomy•Royalties: IDR 99.47
trillion•Non-Tax State Revenue(PNBP):
IDR
99.82
trillion (Year 2023).
•Revenue from coalexports is also an
important source of
foreign exchange forthe country (Indonesia
is the world's largest
coal exporter).

Coalreserves
areabundant,totaling
31.7 billion tons (in2023),
which
issufficient
tomeetenergy needs that
continue to increase
witheconomicgrowth.

Energy Supply Reliability:•A source of energy that can be relied
upon (abundant availability, relativelycheap, and stable) compared to otherenergy
sources.
Energy Security:•Utilizing domestic coal resources,
thereby reducing dependence onenergy
importsandincreasing
national energy security.

RE (Renewable Energy) Condition• Renewable energy sources are not yet optimal. The
realization of EBT only reached 12.5% of the National Long
Term Plan target of 17.9% by 2023.
• The intermittent nature of RE presents challenges forrenewable energy power plants, where the frequency andvoltage always fluctuate, and the system's frequencydepends on the conditions of the energy source. However,
the industry requires reliable electricity, especially energy
availability for the industrial sector..

Increased communitywelfare•With the community
empowerment program(PPM) in 2023 amounting toIDR 252 trillion and creating
333 thousand jobs.
*Gabungan data mineral dan batubara

Negative Impact?

Environmental Damage (Land,Waste, GHG Emissions).

8

2. Energy Transition and Energy Mix Achievements

9

ENERGY TRANSITION AND NATIONAL ENERGY SECURITY
Global commitment to keep
global temperature rise below
2°C, and strive to limit it to 1.5°C ~as a result of COP 26 and G20
2021.

Energy transition for energy security:•The energy transition towards EBT(renewable energy) is an effort to ensure
energy availability that prioritizes
environmental protection and sustainability at
an affordable price in the long term.

EnergyEquity

TRILEMMAENERGY

EnergySecurity

G20 Presidency"Recover Together,Recover Stronger"
Focus of Indonesia's G20 Presidency is on 3 main issues (pillars):
1. Inclusive global health
2. Digital-based economic transformation
3. Sustainable energy transition
Indonesia continues to take concrete steps to reduce GHG
emissions through the Enhanced NDC 2030 with anincrease in the energy sector's target to 358 million tonsof CO2e (31.89%) with its own capabilities and 43.20%
with international support.

Environmental
Sustainability

Transisi Energi Menuju Pemulihan dan Produktivitas Berkelanjutan:
Memperkuat Sistem Energi Bersih Global dan Tranisisi yang Adil melalui:
Ketahanan Aksesibilitas Energi
Mengejar kemajuan aksesibilitas (‘tidak meninggalkan siapapun’)menuju energi yang terjangkau, andal, berkelanjutan, dan modernuntuk semua, khususnya untuk clean cooking & elektrifikasi.
Peningkatan Teknologi Energi Cerdas & Bersih
Memperluas teknologi untuk mengantisipasi tantangan transisi energi
di masa depan
Memajukan Pembiayaan Energi
Memastikan ekosistem pembiayaan hijau dalam transisi energi melaluikajian best practices, mengidentifikasi tantangan, dan mengurangi
disparitas pembiayaan.
10COAL PRODUCTION SCENARIO NZE
Production, Export, and Domestic (NZE Scenario)
750
700

687
0,649,2650

716

729
699
80,5600

723

Strategies720601• Reduction of Production in linewith the PLTU Coal Demand• Use of Biofuels (B20 & B30) as areplacement for fossil fuels• Reclamation of ex mining area

50,4

550

103,6

145

500

175

450

Upstream

51,6

400

413

150

350

141,1

327

300
468

250

52,8
19

392

200

296

150
100

200

55,7
0
113

2050

2060

50
2022
Ekspor2030
Kelistrikan

2040

Non Kelistrikan

PNT

157,6

Produksi

Downstream• Cofiring Biomass• Clean Coal Technologies(CCS/CCUS & IGCC) at PLTU andCoal Processing Industries• Standardization

Skenario BaU
11

Downstream Sector Emission Reduction Programs
Optimalisasi pengembangan Industri Hilirisasi Batubara yangterintegrasi dengan Teknologi Batubara Bersih

Status of Coal Downstream up to 2030

• Optimization of CFPP/PLTU through the application of Clean Coal
Technology; Carbon Capture, Utilization & Storage (CCUS) & IGCC.
• Optimization of coal utilization through coal downstreaming that is
integrated with clean coal technology facilities (CCS and CCUS).
12CLOSING
Law No. 3 of 2020 on Mineral and Coal Mining has become a milestone for improving
environmentally friendly mining governance, supporting investment, and prioritizing nationalinterests, including preparing for energy transformation.
The priority of coal is to meet domestic needs as a source of energy and raw material for nationalindustries.
To anticipate the impact of climate change, coal can be optimized through technologicalinnovations to replace existing power plants with Baseload EBT plants such as through Biomass
Cofiring. Additionally, this is also done through the application of Clean Coal Technology
innovations, including the use of IGCC and CCS/CCUS.
Energy transition can have both positive and negative impacts on social and economic aspects. It is
important for the government to manage the transition's impact to ensure a just transition process
in Indonesia.
Currently, the government is still focused on preparing steps to plan and manage this energy
transition, including setting strategies so that this transition can provide opportunities for theeconomy with the principles of equity and affordability.
13THANKYOUAddresswww.esdm.go.id

Untuk update berita dan informasi sektor ESDM

Jl. Medan Merdeka Selatan
No.18 Jakarta Pusat

Ikuti kami di akun media sosial:
Kementerian Energi dan
Sumber Daya Mineral@kesdm@KementerianESDMKementerianESDM

14