TO RESTRICT COAL EXPORT

It seemed like coal miners had to scheme up a new strategy to maneuver against Government's reg­ulation related to coal mining. Rumors was out that probably by next year the Government would make restrictions on export of coal. The reasoning was that export of coal which constantly increased over the past years must be controlled to reserve this undeniable energy.

Deputy Minister of ESDM Susilo Siswoutorno stated that as planned the restriction would be by some sort of quota of export volume of coal. Essen­tially it was not restricted but regulated by quote. It was some sort of allowed share of volume to be exported, over which the Government could gain con­trol.

So far the Ministry of Energy and Mineral Resources (ESDM) had not decided when the coal export restriction would be exercised. As planned, the restriction would be exercised by stipulating the maximum and minimum limit of coal to be exported abroad - which means that coal reserves would run out for the next 15 years.

The Government in tandem with players of the industry must have resources of sustainable energy. Energy consumption must be reduced to en­sure that they would still be available for the next 20-40 years. The “It's now or never” attitude must be avoided.

Other countries deliberately choose to import coal to supply their domestic need Instead of producing. The consideration was austerity, energy sustainability and environmental conservation of the respective countries.

Therefore, Indonesia was advised to do the same. Meaning, not to produce coal at will without considering energy sustainability. Last year the total production totaled around 350 million ton and soon to be gradually reduced. It was expected that restriction of coal exporting would start in 2014. But one thing was sure it would not be applied this year.

To learn a lesson from China's strategy in strengthening their energy resilience: this largest populated country of the world with their ever rolling industrial machines kept aggressively importing coal from Indonesia. Yet all the world know China's coal reserves in their inland resources were abundant, but China was smart enough to think that while their eco­nomic heartiest was still beating, it was most rational to use coal from Import instead of from internal re­sources.

Soon as the world’s coal reserves had dimin­ished, China could maximize their domestic exploitation of coal and no longer depend on import. It was even possible that China would export their coal at large scale to all the world including Indonesia as In­donesia’s coal reserves thinned out while China still fulfill their own domestic need.

With industrial machines constantly funning and vast amount of energy, needed, sufficient supply of coal in vast amount was most important. Shortage of coal-based energy would put brakes on the state's economic machine and such would be a critical condi­tion.

It was very reasonable that the Government of RI through the Ministry of Energy and Mineral Resources (ESDM) was called to secure national coal reserves by restricting coal export as per next year as the need for coal would soar up time after time.

An overall planning was needed whereby to fulfill the energy need. Domestic need should be prior­itized, only by opportunity export could be permitted, and only through restriction of coal export national coal reserves for the long term could be well secured.

It must be understood that at least till 2030, as projected by Mc Kinsley Global Institute that industrial activities in Indonesia would be a peak phase, this was thanks to Indonesia's demographic bonus, i.e. workers at productive age between 15 to 65 years which according to Kc Kinsey could support economic and investment opportunities.

The productive age group as demographic bonus must have their role maximized so they would not pose as failure trap to national economy. By being pert of the economic machine, the national industry could be spurred on to develop faster whereby to pack up growth.

To gear up the economic machine to its peak performance in 2030, enormous enemy supply would be needed, among others coal. Based on macro­economic consideration, restriction of coal exporting would become inevitable and imperative.

To make sure that all go well, it was advisable for the Government to make early communication with the Regulating Body and associations of coal industry operators for inputs. The communication would serve as some sort of public consultation be­fore any master policy was fully understood whereby to prevent uproars in time to come.

 Business News - February 15,2013