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Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, said that the government continues to improve and transform mineral and coal mining business activities carried out through national mining governance.
"Indonesia has enormous mineral and coal potential and plays an important role in economic growth as well as the independence and resilience of national industries," he said at a talk show entitled 'The Future of Downstream Minerba' in Jakarta, Saturday (20/1).
Irwandy emphasized that increasing the added value of minerals plays an important role in supporting the energy transition in Indonesia. This mineral is used as a raw material for solar power generation, wind power, and nuclear power, as well as for the manufacture of transmission and distribution cables, and electric vehicle batteries.
In addition, Irwandy stated that a number of commodities supporting the energy transition available in Indonesia have mostly been identified as critical minerals for future government policies.
According to the provisions of Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, increasing added value in mineral mining commodities must be carried out through processing and refining processes, both for metal mineral mining commodities, non-metal mineral mining commodities, and rock mining commodities. There is an obligation to carry out the processing and/or refining of minerals obtained from mining activities in the domestic area.
"Future plans that are being prepared to accelerate the increase in the added value of minerals in Indonesia include prioritizing the purchase of raw materials from within the country, coordination with the Ministry of Industry in the management of refining and processing facilities, and fiscal and non-fiscal policies to support the growth of the domestic downstream industry," said Irwandy.
Irwandy further explained that Law No. 3 of 2020 has also regulated the direction of national coal utilization policy, which includes the obligation of coal development and utilization activities. Some of the main concerns are increasing the added value of coal and guaranteeing coal supply for domestic needs.
"According to the road map for coal development and utilization, all downstream coal products are expected to be fully produced after 2030 to 20045 which can later improve national energy security," he said.
The implementation of policies to increase the added value of minerals and coal has significant benefits in realizing economic growth, both at the regional and national levels, compared to relying solely on raw material exports.
"This policy will increase significant economic growth by increasing GDP and GDP, increasing economic benefits for corporations, increasing labor breakfast, increasing export value, and increasing energy supply," Irwandy explained.