DIGIVESTASI - The Ministry of Energy and Mineral Resources (ESDM) announced that Indonesia has a "treasure trove" in the mineral and coal mining sector (Minerva). Without a doubt, mineral and coal wealth could reach the equivalent of $4 trillion or Rp 62,500 trillion (assuming an exchange rate of Rp 15,600 per US dollar). Two-thirds of the total assets come from the coal sector alone. This was revealed by Irwandi Arif, Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Administration.

He revealed that coal mining in Indonesia generates most of its revenue. "We have mineral and coal assets of US$4 trillion, but two-thirds of it still comes from coal. So the role of coal is actually most of our income," he said, Monday (13/11). August 18, 2024). 

According to Irwandi, Indonesia's wealth comes from coal, but Indonesia's income from coal is only US$47 billion or equivalent to IDR 733.9 trillion. "But coal revenue in 2021 only amounted to $47 billion. If we consider this as an annual figure, it means that the return on equity is very low, around 1.2%," he explained. Meanwhile, PNBP from the Minerva sector is estimated to reach IDR 173 trillion in 2023, according to the Ministry of Energy and Mineral Resources. The implementation of PNBP reached 118.41% of the 2023 target set at Rp146.07 trillion.\

The large value of Indonesia's coal resources is also supported by abundant coal resources and reserves. Irwandi explained that based on data from the Ministry of Energy and Mineral Resources, Indonesia's coal resources amount to 99.19 billion tons, and its reserves are 35.02 billion tons. 

Given the existing coal reserves in the country, the age of domestic coal is estimated to be 70 years with the assumption of annual production of 600-700 million tons. "Coal will be Indonesia's main energy source in the next 10 to 20 years, and I think the price is relatively cheap until maybe 40 years ago. If you look at coal, its contribution reaches 42.4%, followed by oil and gas. And so on," he concludes.

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