The Indonesian Chamber of Commerce and Industry (Kadin) is preparing a Road Map for Downstreaming Energy and Mineral Resources and Industry with 4 frameworks including minerals and coal, oil and gas, electricity, and new renewable energy. This was discussed in a meeting between the Chamber of Energy and Mineral Resources and the Chamber of Industry on 26 July 2024 at Kadin Tower.
Mineral and Coal
a. Green Mining
Green mining refers to mining practices that are environmentally and socially friendly. The technology used in green mining aims to reduce emissions and environmental impacts, as well as improve work safety and the welfare of communities around the mine. Examples of green mining applications are the use of autonomous vehicles, remote operations, and real-time monitoring of mineral extraction.
b. Brown Mining Products
Brown mining products, such as lignite or brown coal, are coal with low carbon content and low energy efficiency. Lignite is often used as fuel for steam power plants, but has a significant environmental impact due to its high carbon dioxide emissions.
Minyak Bumi dan Gas
a. Oil and Gas Bill
The revised Oil and Gas Law (RUU Migas) is proposed to include provisions on carbon utilisation and storage facilities (CCS/CCUS). This aims to provide a strong legal basis for CCS/CCUS operations in Indonesia, which is expected to support the reduction of carbon emissions in the oil and gas sector.
b. Carbon Capture Storage
Presidential Regulation No. 14 of 2024 regulates the implementation of CCS in Indonesia, including carbon capture, transport, and carbon injection and sequestration methods. The regulation aims to prioritise carbon storage capacity for domestic carbon producers and sets technical standards that must be adhered to.
c. Supply and Demand Mapping
Oil and gas supply and demand mapping involves analysing the demand and supply of oil and gas in various industrial sectors. This is important for identifying gaps between production and consumption, and for planning the necessary investments and infrastructure to meet national energy needs.
Electricity
a. Power Wheeling
Power wheeling is a mechanism that allows electricity producers to transmit their electricity through third-party owned transmission networks to end consumers. It supports the diversification of energy sources and enables wider use of renewable energy in the industry.
b. Green Electricity
The application of green electricity in industry involves the use of renewable energy sources such as solar, wind, micro-hydro, and biomass to reduce carbon emissions and support environmental sustainability. Industries can adopt green technologies and participate in decarbonisation programmes to achieve net-zero emissions targets.
New Renewable Energy
a. Waste Power Plant Incentives
Waste Power Plants (PLTSa) are incentivised by the government to encourage the use of new and renewable energy (EBT). With this incentive, it is expected that the contribution of EBT in the national energy mix will reach 23% by 2025. PLTSa not only serves as a source of energy, but also helps solve the waste problem, thus providing significant environmental benefits.
b. Application of EBT Electricity for 3T Island
The application of EBT in Disadvantaged, Frontier, and Outermost (3T) areas is very important to increase access to electricity. For example, the construction of a Biomass Power Plant (PLTBm) on Siberut Island that replaces diesel generation. This not only reduces dependence on fossil fuels, but also increases the electrification ratio and creates local jobs.
c. Utilization of Baseload Renewable Energy for Green Hydrogen Production New renewable energy that has not yet entered the grid can be used as a baseload source for green hydrogen production. By utilising EBT as an energy source, the electrolysis process to produce hydrogen can be carried out in a sustainable and environmentally friendly manner. This is in line with global efforts to reduce carbon emissions and transition to a cleaner economy.
