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"We have not been able to start, there are things that need to be considered," said the director general of mines and coal Bambang Gatot Ariyono in Tempo on Monday, May 21, 2018.
The regulation states that the Minister of Energy may control the production of coal and mineral products provided that their objectives meet the environmental and conservation requirements of natural resources. The production volume is limited based on the review of the minister with other ministries or the local government.
However, the regulations do not regulate the technical control of production. In the rules, the rules contain only one article. Bambang confirmed that. He argues that the production restrictions will be specifically regulated in other regulations.
Since 2015, the Ministry of Energy has always failed to limit the production of coal. Last year, the national production of black gold reached 467 million tons. Indeed, based on the 2015-2019 Medium-Term National Development Plan, production is expected to drop to 413 million tonnes. This year's production will rise to 477 million tonnes. Compared far from the RPJMN target of 406 million tons.
The only hope is next year. However, Bambang expects production will increase by 10 percent thanks to the implementation of special incentives for coal sales to Domestic Market Bonds (DMOs). The policy allows companies to increase their production in exchange for lost revenue potential.
"We have to take into account the DMO policy," Bambang said.
In addition, production control is not easy because most coal mining permits are in the area. This year, said Bambang, many coal miners are entering the production phase soon. Dredging has increased after rising coal prices since the end of 2016.
The Executive Director of the Hungarian Coal Mines Association, Hendra Sinadia, rejected the plan to limit production. According to him, the policy could hit the new coal industry after a free fall because of the prices that fell in 2014 there is. If the industry is gloomy, the contribution of non-tax revenue from the state to the mining sector will be corrected.
Hendra said that the government was not right to use the argument of continuity of resources as a pretext for controlling production. According to him, to keep the reserve awake, the government must stimulate investment in the search for resources or exploration. "The exploration stay is improved, production must not have occurred," said Hendra.
Publish what you pay Rizky Ananda, a mining policy researcher in Indonesia, warned that rising coal prices would trigger mbadive exploitation. Indonesian coal reserves of only 28.4 billion tons will be exhausted in 70 years. In addition, the mbadive exploitation is also vulnerable to anarchy.
"Continue to increase production targets without improving on the supervision side as well as opening the taps of coal mining," Rizky said.
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