TASNIM ILMIARDHI
Energy Legal Practitioner
ACCELERATION population growth and increased industrialization of Asia amid limited resources of fossil energy, especially energy, causing an imbalance of the availability of energy resources with existing needs.
The availability of a national energy supply, is needed in the process of development and economy of a country. Stability and continuity of the achievement of the country's economy development, energy security can not be released there. Sufficient energy supply, access to sources of sustainable energy, the ability to harness energy sources will support a national energy security.
Asia's energy needs are expected to increase, from 110 quadrilliun Btu (Qbtu) in 2002 to 221 in 2025 or QBtu doubled within a period of 23 years. Of the increase is so high, China is a country that is as high as the increase from 43 in 2002 to 109 Qbtu Qbtu Ditahun 2025.
Condition of Indonesia's energy is currently still relies on fossil energy sources in this case oil and coal in meeting national energy. Petroleum reserves in the state declined. For new and renewable energy, even though Indonesia has a potential range, but the management and its use is not optimal. Variety of potential energy include: vegetable energy sources, gas, geothermal, nuclear energy, solar energy, wind energy and ocean energy.
Together with petroleum, coal is the primary source of energy which becomes a mainstay in meeting national energy needs. As a source of primary energy, coal is a strategic component in contributing to national energy security, and should receive serious attention in the implementation and handling.
Indonesia coal resource potential of 105.2 billion tons, with reserves of 21.13 billion tonnes (Ministry of Geology and Mineral Resources Agency). Reserves still need to be separated as geological reserves, proven reserves, and reserves can be mined. The amount of reserves that can be mined is usually half the amount of overall reserves.
Actually, Indonesia is not included in the map, and when compared with the U.S. reserves, China and Australia, this rate is still quite behind. Largest reserves are found in the United States, Russia, China, India and Australia. Of the three fossil fuels, coal reserves have the most widely distributed. Coal is mined in over 100 countries, and on all continents except Antarctica. But in reality, Indonesia is the world's largest coal exporting countries.
Ironic indeed, when energy needs are likely to increase, Indonesia sell off the existing energy potential, to be consumed in other countries. Assuming no new exploration activity, Indonesia's coal reserves can be mined will be exhausted within 20 years.
Overlapping
The implementation of regional autonomy contributed negatively to mining in Indonesia. Unpreparedness and incompetence in managing the natural resources of concern in itself, but rather on the other hand, the area is given authority to issue a mining permit.
Area was authorized in issuing the mining permit (IUP) by region still own. Minimal coordination between institutions and regions, as well as the demands of local revenue targets, become a thing of permissiveness for the issuance of IUP. Not infrequently, IUP issued without considering the feasibility of capacity and capability of businesses in mining, which certainly would have led to the neglect of good mining practices that should be done consistently.
As the impact of regional autonomy, exploitation of coal as a commodity increasingly out of control. IUP which approximately 8000 have been issued by local governments. Not to mention the overlap of land recorded in the region IUP.
Expensive costs and foreign intervention
Condition of Indonesia is increasingly opened up opportunities for foreign direct control of coal and mineral resources. Foreign mining companies, especially China and India, came to master small mines with mining companies to finance local funding difficulties.
The high cost of mining exploration and production operations are indirectly forcing domestic firms to partner with a stranger. Surely this will make the company become oriented and encourage economic dibaikannya good mining practices that should be run. Without a comprehensive planning strategy and rules of good mining practices, which carried out massive exploitation with only a profit-oriented, in turn, will have a negative impact.
Ownership of coal mines that were once dominated by mining companies background, but lately more dominated by financial institutions. Dynamics of the business relationship with the coal industry can change so quickly, from one owner to another owner.
The pattern of the mining industry's business is not just counting on the value price of coal or a commodity, but rather dominated by financial engineering strategy. In fact, some financial engineering company is an overseas player, who irrespective of boundaries and interests of the state.
With the entry of foreign investors, of course, will prioritize the needs of the countries energy needs of investors. Practitioners coal is still oriented prices, and export markets are targeted to meet the appropriate selling price in order to gain profit as much as possible. Without realizing it, Indonesia has become the upstream coal resources. Meeting the needs of the Domestic Market Obligation (DMO) for coal only as much as 30 percent, helped increase the inhibition of primary energy supply in Indonesia.
Term vision is needed to forward the policy of coal for power development or also a kind of coal for oil substitution policies. Can take an example, that with a strong vision, India build coal as part of its domestic energy development, and nearly 90 percent by the state-run mining company. Only about 10 percent are handed over to private companies, and this was recently enacted. Of course, it can be an example to make Indonesia more critical corrections regarding the use of national coal reserves more wisely.
Currently the private portion of national energy control only 25 percent, while 75 percent of foreign-controlled. With the mastery of foreign domination which extends the working area and spread from Sabang in the west region of Papua in the east to the archipelago, making the country's sovereignty and the nation vulnerable. Such conditions are dangerous. In the event of the slightest security turmoil in the country, foreigners can immediately send the aircraft carrier (warship) into Indonesian territory in the name of safeguarding assets and its citizens. If that happens, extinguished the sovereignty of Indonesia.
DMO 30 percent and the escalation of international markets
Prioritize the needs of domestic coal stipulated in Law No. 4 of 2009 on Mineral and Coal, which is then translated into policy Domestic Market Obligation (DMO) of the number of suppliers, quality and price of coal, with the amount of DMO rates ranging from 30 percent.
EMR data showed that national coal production in 2010 amounted to 262.48 million tonnes. Of the total national coal production, only 24.17 percent for the fulfillment of domestic needs, while the remainder (75, 83 per cent) for the benefit of the export market.
Coal prices on international markets is not enough just to rely on parameters of demand and supply alone. Some things that need to be a concern is the competition variable financial performance of each business. It also needs to be approached by the importing business, in this case by the end-users or traders, and not just limited to the quality, the price of coal, shipping, and the points agreed upon others.
Even if observed, approach to get the coal, both for short term and long term, it can be attributed to various other commitments associated with financial approach. Such as project financing or financial loans, commitments to invest, transfer of ownership of shares, and so forth.
Thus, the level of security of supply of coal not only can be read nationally in terms of production alone, but need more details on the position of mining companies, infrastructure, export potential, export prices, contracts and patterns that occur.
Serious efforts
With the dominance of foreign ownership in a number of coal mining, would be a higher priority export sales, with consideration of international prices and energy demand from foreign countries the mine owners. From these aspects, the coal has value and strategic importance, both from the aspect of economic liquidity, as well as state security.
Coal as an energy unrenewable provides support for Indonesia's energy security. Coal should be a strategic resource and perlakukannya should provide maximum benefit for the welfare of the nation. Looking at the rate of population growth in the future, with a number of Indonesia's population growth is projected to be 247 million people in 2015, and only has 20.9 billion tons of reserves alone, it is necessary to maximize the management of coal to build the maximum welfare of the people.
Variable count on the basis of economical reserves are calculated on economic parameters, depth of coal mining costs, distance costs, or transportation costs, to be a parameter element of this reduction on existing coal reserves. Indonesia reserves could be far below the 20.9 billion tons. In contrast regardless of the level of national production, a rational export restrictions, could be the age of Indonesia's coal production is only up to 20 years, or only limited plant life. Far from the existence of the State in support his growing age generation.
Coal is a strategic material, an increase in the DMO, and coal for power
In meeting the energy needs are so high in Indonesia, should be able to maintain the availability of energy supplies, both for now and for future generations. Coal as one of the supporting components of energy sources certainly should be getting more serious attention.
Tighter regulation is needed in the implementation of coal-based energy supply. From all this time which became a trade commodity, both locally and internationally, would be better if used as a base material powerhouse for domestic consumption.
In Law No. 4 of 2009 on Mineral and Coal Mining, coal mining was only a matter of ordinary, so the treatment was not different from other minerals. This is very different from the previous Mining Act (Act No. 11 of 1967 on Basic Provisions of Mining), which makes coal as a strategic mineral.
Return of coal as an indispensable strategic minerals as an effort to maintain the availability of national energy supply. Among them by performing rearrangement in terms of regulation both from the Law until the technical rules in each department.
The government should be more serious to establish with certainty that coal is a strategic natural resource (unrenewable resources) that must be controlled by the state and as a commodity that has an important role in the national economy which in turn is driven as a booster in lifting economic growth in the national economy.
With a position as a strategic mineral, certainly not enough to give the policy limits DMO of the number of suppliers, quality and price of coal, with which there is today. Priority needs of the domestic coal contained in Law No. 4 of 2009 on the Mining Minerals and Coal needs to be increased magnitude number, with the hope of fulfillment for the sake of the nation's energy supply, including security in the physical sense of ownership Region State Backup (WPN).
Sustained supply of coal by not placing as a tool commonly traded commodity, is expected to as a economic driver that has a value multiplier effect, particularly in driving the national economy and industry. Coal for power development policy is expected to meet the needs of Development of infrastructure in the energy sector.
(***)
ACCELERATION population growth and increased industrialization of Asia amid limited resources of fossil energy, especially energy, causing an imbalance of the availability of energy resources with existing needs.
The availability of a national energy supply, is needed in the process of development and economy of a country. Stability and continuity of the achievement of the country's economy development, energy security can not be released there. Sufficient energy supply, access to sources of sustainable energy, the ability to harness energy sources will support a national energy security.
Asia's energy needs are expected to increase, from 110 quadrilliun Btu (Qbtu) in 2002 to 221 in 2025 or QBtu doubled within a period of 23 years. Of the increase is so high, China is a country that is as high as the increase from 43 in 2002 to 109 Qbtu Qbtu Ditahun 2025.
Condition of Indonesia's energy is currently still relies on fossil energy sources in this case oil and coal in meeting national energy. Petroleum reserves in the state declined. For new and renewable energy, even though Indonesia has a potential range, but the management and its use is not optimal. Variety of potential energy include: vegetable energy sources, gas, geothermal, nuclear energy, solar energy, wind energy and ocean energy.
Together with petroleum, coal is the primary source of energy which becomes a mainstay in meeting national energy needs. As a source of primary energy, coal is a strategic component in contributing to national energy security, and should receive serious attention in the implementation and handling.
Indonesia coal resource potential of 105.2 billion tons, with reserves of 21.13 billion tonnes (Ministry of Geology and Mineral Resources Agency). Reserves still need to be separated as geological reserves, proven reserves, and reserves can be mined. The amount of reserves that can be mined is usually half the amount of overall reserves.
Actually, Indonesia is not included in the map, and when compared with the U.S. reserves, China and Australia, this rate is still quite behind. Largest reserves are found in the United States, Russia, China, India and Australia. Of the three fossil fuels, coal reserves have the most widely distributed. Coal is mined in over 100 countries, and on all continents except Antarctica. But in reality, Indonesia is the world's largest coal exporting countries.
Ironic indeed, when energy needs are likely to increase, Indonesia sell off the existing energy potential, to be consumed in other countries. Assuming no new exploration activity, Indonesia's coal reserves can be mined will be exhausted within 20 years.
Overlapping
The implementation of regional autonomy contributed negatively to mining in Indonesia. Unpreparedness and incompetence in managing the natural resources of concern in itself, but rather on the other hand, the area is given authority to issue a mining permit.
Area was authorized in issuing the mining permit (IUP) by region still own. Minimal coordination between institutions and regions, as well as the demands of local revenue targets, become a thing of permissiveness for the issuance of IUP. Not infrequently, IUP issued without considering the feasibility of capacity and capability of businesses in mining, which certainly would have led to the neglect of good mining practices that should be done consistently.
As the impact of regional autonomy, exploitation of coal as a commodity increasingly out of control. IUP which approximately 8000 have been issued by local governments. Not to mention the overlap of land recorded in the region IUP.
Expensive costs and foreign intervention
Condition of Indonesia is increasingly opened up opportunities for foreign direct control of coal and mineral resources. Foreign mining companies, especially China and India, came to master small mines with mining companies to finance local funding difficulties.
The high cost of mining exploration and production operations are indirectly forcing domestic firms to partner with a stranger. Surely this will make the company become oriented and encourage economic dibaikannya good mining practices that should be run. Without a comprehensive planning strategy and rules of good mining practices, which carried out massive exploitation with only a profit-oriented, in turn, will have a negative impact.
Ownership of coal mines that were once dominated by mining companies background, but lately more dominated by financial institutions. Dynamics of the business relationship with the coal industry can change so quickly, from one owner to another owner.
The pattern of the mining industry's business is not just counting on the value price of coal or a commodity, but rather dominated by financial engineering strategy. In fact, some financial engineering company is an overseas player, who irrespective of boundaries and interests of the state.
With the entry of foreign investors, of course, will prioritize the needs of the countries energy needs of investors. Practitioners coal is still oriented prices, and export markets are targeted to meet the appropriate selling price in order to gain profit as much as possible. Without realizing it, Indonesia has become the upstream coal resources. Meeting the needs of the Domestic Market Obligation (DMO) for coal only as much as 30 percent, helped increase the inhibition of primary energy supply in Indonesia.
Term vision is needed to forward the policy of coal for power development or also a kind of coal for oil substitution policies. Can take an example, that with a strong vision, India build coal as part of its domestic energy development, and nearly 90 percent by the state-run mining company. Only about 10 percent are handed over to private companies, and this was recently enacted. Of course, it can be an example to make Indonesia more critical corrections regarding the use of national coal reserves more wisely.
Currently the private portion of national energy control only 25 percent, while 75 percent of foreign-controlled. With the mastery of foreign domination which extends the working area and spread from Sabang in the west region of Papua in the east to the archipelago, making the country's sovereignty and the nation vulnerable. Such conditions are dangerous. In the event of the slightest security turmoil in the country, foreigners can immediately send the aircraft carrier (warship) into Indonesian territory in the name of safeguarding assets and its citizens. If that happens, extinguished the sovereignty of Indonesia.
DMO 30 percent and the escalation of international markets
Prioritize the needs of domestic coal stipulated in Law No. 4 of 2009 on Mineral and Coal, which is then translated into policy Domestic Market Obligation (DMO) of the number of suppliers, quality and price of coal, with the amount of DMO rates ranging from 30 percent.
EMR data showed that national coal production in 2010 amounted to 262.48 million tonnes. Of the total national coal production, only 24.17 percent for the fulfillment of domestic needs, while the remainder (75, 83 per cent) for the benefit of the export market.
Coal prices on international markets is not enough just to rely on parameters of demand and supply alone. Some things that need to be a concern is the competition variable financial performance of each business. It also needs to be approached by the importing business, in this case by the end-users or traders, and not just limited to the quality, the price of coal, shipping, and the points agreed upon others.
Even if observed, approach to get the coal, both for short term and long term, it can be attributed to various other commitments associated with financial approach. Such as project financing or financial loans, commitments to invest, transfer of ownership of shares, and so forth.
Thus, the level of security of supply of coal not only can be read nationally in terms of production alone, but need more details on the position of mining companies, infrastructure, export potential, export prices, contracts and patterns that occur.
Serious efforts
With the dominance of foreign ownership in a number of coal mining, would be a higher priority export sales, with consideration of international prices and energy demand from foreign countries the mine owners. From these aspects, the coal has value and strategic importance, both from the aspect of economic liquidity, as well as state security.
Coal as an energy unrenewable provides support for Indonesia's energy security. Coal should be a strategic resource and perlakukannya should provide maximum benefit for the welfare of the nation. Looking at the rate of population growth in the future, with a number of Indonesia's population growth is projected to be 247 million people in 2015, and only has 20.9 billion tons of reserves alone, it is necessary to maximize the management of coal to build the maximum welfare of the people.
Variable count on the basis of economical reserves are calculated on economic parameters, depth of coal mining costs, distance costs, or transportation costs, to be a parameter element of this reduction on existing coal reserves. Indonesia reserves could be far below the 20.9 billion tons. In contrast regardless of the level of national production, a rational export restrictions, could be the age of Indonesia's coal production is only up to 20 years, or only limited plant life. Far from the existence of the State in support his growing age generation.
Coal is a strategic material, an increase in the DMO, and coal for power
In meeting the energy needs are so high in Indonesia, should be able to maintain the availability of energy supplies, both for now and for future generations. Coal as one of the supporting components of energy sources certainly should be getting more serious attention.
Tighter regulation is needed in the implementation of coal-based energy supply. From all this time which became a trade commodity, both locally and internationally, would be better if used as a base material powerhouse for domestic consumption.
In Law No. 4 of 2009 on Mineral and Coal Mining, coal mining was only a matter of ordinary, so the treatment was not different from other minerals. This is very different from the previous Mining Act (Act No. 11 of 1967 on Basic Provisions of Mining), which makes coal as a strategic mineral.
Return of coal as an indispensable strategic minerals as an effort to maintain the availability of national energy supply. Among them by performing rearrangement in terms of regulation both from the Law until the technical rules in each department.
The government should be more serious to establish with certainty that coal is a strategic natural resource (unrenewable resources) that must be controlled by the state and as a commodity that has an important role in the national economy which in turn is driven as a booster in lifting economic growth in the national economy.
With a position as a strategic mineral, certainly not enough to give the policy limits DMO of the number of suppliers, quality and price of coal, with which there is today. Priority needs of the domestic coal contained in Law No. 4 of 2009 on the Mining Minerals and Coal needs to be increased magnitude number, with the hope of fulfillment for the sake of the nation's energy supply, including security in the physical sense of ownership Region State Backup (WPN).
Sustained supply of coal by not placing as a tool commonly traded commodity, is expected to as a economic driver that has a value multiplier effect, particularly in driving the national economy and industry. Coal for power development policy is expected to meet the needs of Development of infrastructure in the energy sector.
(***)
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