Measuring The Business Productivity Of Charcoal Export From Indonesia
Charcoal Export From Indonesia – A number of coal mining companies are diversifying into the power generation sector. In addition to increasing the added value of mining, the diversification effort. Also to explore other sources of income from selling mining products. In the past decade, coal prices have fluctuated. Especially since 2014, coal prices have continued to decline. Coal prices began to improve again in 2017.
Based on data from the Geological Agency, the Ministry of Energy and Mineral Resources (ESDM) in 2018. Indonesia has 37 billion tons of coal with proven reserves of 20.11 billion tons and reserves of estimated 17.02 billion tons. The amount of reserves is up 12 billion tons compared to the previous year.
Even so, the amount of reserves is still around 2% of the total world reserves. In fact, Indonesia is still the world’s largest exporter of thermal coal.
If the average annual production is shared by 485 million tons, assuming there are no additional reserves. The age of Indonesian coal only 76 years left. However, the calculation does not take into account the economics of coal reserves.
Chairperson of the Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo said that the period of coal utilization was ultimately very difficult to calculate. There are at least three factors that influence.
First, the quality of coal that can be mined. According to him, some types of coal may not have a market, so the reserves are not economical to mine. Second, the location of the mine. Third, the depth of the mine.
Now the question is not how long these reserves will run out. If all of them are mined, but how long can the company last? There could be only 5 years or 10 more years.
Therefore, is the coal business still prospective?
Hendra Sinadia, The Executive Director of the Indonesian Coal Mining Association (APBI). Is hopeful that coal is as yet forthcoming in the following couple of years. As per him, the advancement pattern of steam power plants is as yet running in a few nations, particularly ASEAN.
For the domestic market, coal is still the main choice as a primary energy source for electricity generation.
In light of the Electricity Supply Business Plan of PT Perusahaan Listrik Negara (Persero) 2019-2028. In the following 10 years there will be an extra 56.4 gigawatts (GW) of intensity plants. A sum of 27,063 megawatts (MW) or 48% moved toward becoming PLTU apportions.
Of the additional capacity, there will be an increase in coal demand of more than 60 million tons to 153 million tons in 2028. This is a noteworthy sum considering the acknowledgment of coal requirements for power plants a year ago was as yet 91.1 million tons.
Some giant groups or companies in the coal mining sector are also very serious in the electricity business. One of the companies is Giri Mera.
According to him, when the plant has been operating. At least the first 5 years the company has not been able to get a profit. Because the funds are still used to return loans to third parties or banks. Only in the next 5 years, the company can obtain profits.
Economic growth and increasing population are opportunities for companies to decide to expand to the downstream sector, namely generation. Diversification into non-coal businesses has become a mining company’s strategy in the midst of business conditions. That are full of global uncertainty. So, if you want to find the best quality charcoal, don’t hesitate to Contact Us. +62 812 5033 7500