Coal Supports National Energy Security

Regarding the coal industry in Indonesia which is considered to be the belle of national energy security is a complex and interrelated problem in various aspects.Starting from the technical issues of mining, business, to regulations that involve government policies and community input are interesting topics to study, especially considering coal’s economic contribution.

The dynamic and evolving condition of the times is a challenge for the coal industry in Indonesia in supporting national energy security.To discuss this, Tempo held an Energy Forum with the theme “The Role of Coal in Supporting National Energy Security” on Tuesday, July 28, 2020, live streaming on Tempo Youtube and Facebook.

The speakers presented were Azis Armand, Indika Energy’s Vice President Director & CEO;Sujatmiko, Director of Coal Exploitation of the Ministry of Energy and Mineral Resources;Hendra Sinadia, Executive Director of the Indonesian Coal Mining Association;and Maman Abdurrahman, Member of Commission VII of the Indonesian Parliament;and guided by Tomi Aryanto, Director of

Sujatmiko said that the coal industry still has the potential to be a mainstay of energy in the future because of its benefits as a source of life energy, an investment source, and a source of national economic development.

In line with this, Hendra Sinadia added, now is the momentum where all parties engaged in coal mining to unite in facing this difficult situation.

Meanwhile, Maman Abdurrahman said that the importance of coal resources requires clear regulations and protects all parties, such as Law No. 3 of 2020 concerning Minerba which was passed last May.”What needs to be underlined from the existence of the Minerba Law is, it is necessary to have legal certainty to all our friends who are engaged in the mining industry, especially coal,” said Maman.

Azis Armand as a business actor in the mining sector said that all parties engaged in the coal industry indeed need legal certainty that protects the business in terms of investment and corporate responsibility.

Azis assumed that the existence of the Minerba Law would increase state revenue.For this reason, he hopes the government can pay attention to the three principles relating to taxation and Non-Tax State Revenue (PNBP).

“The principle of increasing state revenue, the principle of economics, and the principle of equality so that it can be considered.State revenue is a mandate that
must occur.Then, whoever owns the company must benefit (the state), “he said.

In accordance with the mandate of the law, increasing state revenue is something that needs to happen.Regarding the economic principle, whatever you want to do must still benefit mining activities by applying good management and cost rules.

Judging from the principle of equality, Azis argues that since the enactment of the Law and the extension of the Coal Mining Concession Work Agreement (PKP2B), only the term permit is known but there is no longer a contract of work or PKP2B term.”While on the other hand we see, there are some differences both from the determination of tariffs and taxes and not taxes.While the items we are trying to do are the same, “he said.

Azis said, Indika Energy and its subsidiaries will continue to participate in developing the country, as well as enhancing programs for community empowerment and environmental preservation.