Thursday, 5 February 2015


Mineral and oil & gas business and stakeholders in Indonesia are not optimistic about nonconventional exploration, namely coal bed methane (CBM). Even though there are some who are optimistic about the exploration success rate, which is said to be far greater than conventional oil and gas exploration, the fact is different. Some business see that CBM exploration from coal seam, besides as a source rock, is also as a reservoir. “Drilling is running, but it was still mud. While the coal layer cannot be removed, “Tito Loho of PT Tender Indonesia told Business News (December 9)

Similar but not the same as some other sources complied by Business News explaining that CBM exploration is still far from expectations. “There are still many things that are not yet ready. What are the standard? For example, if it is oil, it is in barrel. If it is gas, MMSCFD (Million Standard Cubic Feet per Day). But if CBM, what are the standards? The government could not make sure, “researcher of Earth and Energy Technology Workshop of Trisakti University, told Business News.

According to researchers from the Research and Development Group for Exploitation Technology (KP3T Eksploitasi) of the Ministry of Energy and Mineral Resources, it took decades for a research to generate results. “Research in Australia for oil or gas reserve did not take one or two years. It may take decades to get the results of CBM exploration, “Rachmi of KP3T told Business News.

Meanwhile, Herman Kasih of Indonesian Coal Mining Association (APBI), explained about coal, ranging from exploration/exploitation practice in the field that must be in line with the Environmental Conservation Campaign that must be based on good mining practices. “The government must consistently supervise, although there are no mines that did not cause damage,” Herman, vice chairman of APBI, told Business News (December 9).

As a businessman, he does not deny the safety of residents and environmental sustainability associated with mining activities in various locations. But, mining activities cannot be separated from change of landscape. “There is no mining activity which does not change landscape. But we, especially members of APBI, are consistent with good mining practices.”

Mining activities, including in Borneo, Sumatra, and Sulawesi, often create holes. The depth of the hole can be up to thousands of meters. But, with good mining practices, miners have to restore or reclaim the land they used. Coal mining is not possible, because only one hole is drilled.

Entrepreneurs have taken into account the exploitation of coal through several drill holes. “We have managed the holes, by making a lake for ecotourism activities. Some of them change the drill holes into aquaculture ponds. Mines causes damage, but in can be disallowed. Some of coal mining activities in Indonesia are open pit. It means that excavation is inevitable. There are one or two mining companies who conduct exploitation underground.”

Coal mining is relatively more simple than minerals. With an experience of about 25 years, Herman continues to update the latest developments, including the regulation. The history of mining and energy in Indonesia was shocked when the Government implemented Law No. 4/2009 on Mineral and Coal Mining. The effect is export ban on are (raw material) in the at first, was faltering. “But until now, the government remains consistent. I asked Saleh Husin (Minister of Industry), that the downstreamization program is still running. The reference is the mining roadmap made by his predecessor, Mr. Hidayat (former Minister of Industry).”

It also dismissed the ‘rumor’ among coal mining entrepreneurs. But, exports, which include nickel ores, bauxite, tin and others, were still prohibited. The application of mining Law and the obligation to build smelters. Processing of raw materials into semi-finished goods creates industry added value. “Mr. Saleh also visited some smelters in Morowali (Central Sulawesi). So I am sure that the downstreamization program is still running. The rumor is automatically refuted.” (E)

Business News - December 12, 2015

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