Bappenas: Best practices of coal mining industries, Indonesia

Bappenas: Best practices of coal mining industries, Indonesia

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  Best Practices ofCoal Mining Industries in supporting Regional Development in Indonesia October, 2023 Ministry of National Development Planning /Bappenas Republic of Indonesia
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  ENERGY TRANSITION IN17 DIRECTION (GOALS) OF BILL LONG-TERM PLANNING 2025 – 2045 INDONESIA TRANSFORMATION TRANSFORMATION FOUNDATION FRAMEWORK OF TRANSFORMATION The energy transition as part of the economic transformation (green economy – IE 5), is being implemented with strengthening energy security (IE 16) as one of the transformation foundation
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  3 Source: Handbook ofEnergy and Economic Statistics of Indonesia (2022), MODI MEMR (2023), Global Coal Mine Tracker (Oct, 2023), DG Coal, MEMR, 2023. South Sumatra ▪ 3rd coal-producing Province (57 Mil. Ton in 2023) East Kalimantan ▪ 1st coal-producing province (276 Mil. Ton in 2023) South Kalimantan ▪ 2ndcoal producing Province (207 Mil. Ton in 2023) Central Kalimantan ▪ 4thcoal producing Province (40 Mil. Ton in 2023) North Kalimantan ▪ 5th coal producing Province (17.8 Mil. Ton in 2023) Jambi ▪ 6th coal-producing Province (10.2 Mil. Ton in 2023) Coal Production (2022) 687.4 Mil. Ton Coal Export (2022) 465.3 Mil. Ton Coal Permits for Production and Exploration (2022) 902 IKI JET Focus Regions • Indonesia has 4% of global coal reserves amounting to 35.05 Billion Ton (Geology Agency, 2023) • Coal is an important export commodity (Indonesia is the 3rd largest coal producer and major coal exporter) Coal Industries’ Contribution for Community Development & Empowerment (2022) US$ 69.73 Mil INDONESIA AND ITS COAL
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  Key Regulations Law 3/2020 concerningMineral and Coal Mining Law 32/2009 on Environmental Management MEMR Regulation 25/2018 concerning Mineral and Coal Mining Business MEMR Decree 1824K/30/MEM/2018 concerning Guidelines for the Implementation of Community Development and Empowerment Key Regulations Ministry of Mineral and Resources (MEMR) Regulation 26/2018 on Implementation of Good Mining Principles and Supervision of Mineral and Coal Mining - Article 3 has set obligations for mining permit holders to conduct good mining practices, consisting of : 1. Mining Techniques 2. Mineral and Coal Conservation 3. Occupational Health dan Safety 4. Safety of Mining Operation 5. Management of environmental conditions during mining, reclamation, post-mining and post-operation 6. Technology utilization and implementation, engineering, development, and implementation of mining technology KEY REQUIREMENTS Industry Obligations Create a masterplan of Community Development and Empowerment based on social mapping of the local area and community needs Conduct a 100% Reclamation and Post Mining Plan Develop plans for environmental management including acquiring environmental permits FRAMEWORK FOR GOOD MINING PRACTICES IN INDONESIA
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  Kaltim Prima Coal,East Kalimantan EXPLOITATION PHASE Focusing on agriculture, cattle and chicken farming, agribusiness, and fisheries Economic Diversification Programme Provide capacity building for 325 farmers, village-owned enterprises, and scholarships Capacity Building & Agricultural Training • Integrated Waste Management and waste banks provide opportunities for employment • Collaboration with local stakeholders for water provision using ex-mining ponds Infrastructure Development In 2021, goods and services are procured from 21 local suppliers Local Procurement Concrete Contribution Trained 325 farmers, supported 50 SMEs supplying 76% of the eggs for the districts, and prioritized local goods/services at a value of US$ 1.33 Million • Covering an area of 84,000 ha, employing over 25,000 persons (workers and contractors) • The immediate area is initially a small community of subsistence farmers and fishermen
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  PTBA Ombilin, Sawahlunto,West Sumatera TRANSITION PHASE Concrete Contribution 1886-1893 infrastructure preparation 1894 First Production (Dutch) 1945 Management is taken over by Indonesia 1950-1958 Management under Ministry 1961-1968 Management under PSU 1968 - 1990 Management under SOE 1968 - 1990 Management under SOE 1990 SOE Restructurisation 1999 Last Production 2003 Mine Closure 1858 coal discovery (Dutch) 1921 Peak Production around 600,000 pa (Dutch) 1. Coal Resources : 100 million ton, Recovered/Mined 30 million ton 2. Sawahlunto city has expanded from 779 ha (1920) to 27,000 ha (1990), 3. Population was boomed from 10,000 in 2020 to 40,000 in 2030. After last production in 2003, there is migration of around 10,000 population 4. 2001, Local Government established Local Regulation/Law No 2 Year 2001 regarding 2020 Vision of Sawahlunto as Cultural Mining Tourist City 5. 2018, Sawahlunto is established as national geopark and now is attempting to obtained UNESCO Global Geopark. 6. 2019, Sawahlunto has been listed by UNESCO as World Heritage Site after inisated from 2016 7. Continuous Support from PTBA and MEMR to established Sawahlunto as Center of Excelence and Center of Training in Mining Vocational has succeed to generate or revive its economy post mining.
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  TRANSITION PHASE 0 1 2 3 4 5 6 0 100 200 300 400 500 600 700 800 900 1000 2004 20052006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Thousands Tourist Visitation and Poverty Rate in Sawahlunto Tourist Visit Poverty Rate Source : Modified from Syafrini, 2017 Education and Vocational Training Testing Laboratory The Underground Mining Training Center is experienced in providing competency-based training for underground and open-pit mining fields The Underground Mining Training Center has quality testing services for coal uses for commercial, educational, or other purposes with testing parameters at competitive rates
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  GEOLOGICAL – BIODIVERSITY– CULTURAL SITES SAWAHLUNTO NATIONAL GEOPARK Rafflesia arnoldii flower Hornbills bird Anthracite Coal Seam Lurah Loba Waterfall Biru Lake Kandih Lake Landu Waterfall Stone Garden Bikan Waterfall Puncak Cemara Landscape Puncak Polan Landscape Teletubbies Hill Goedang Ransoem Museum Coal Mine Pit Sawahlunto Tunnel
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  CHALLENGES AND OPPORTUNITIES INCOAL TRANSITION Time consuming Participation engangement in planning commonly is time consuming High Paid Employer Making another alternative sector less attractive Limitation of alternative economic opportunities Due to lack of information and risk Procedural repurposing of ex-mining land Required more procedural, not integrated Higher Production Cost for Companies Not all companies adhere to the same (high) standards due to limited enforcement and supervisory activities Coal mining companies increasingly investigate opportunities to diversify their portfolio into other economic prospects. This includes renewable energy. Solar power is one option, company can design (part of the) ex-mine site for a solar panel farm. Ex-mine pits, which may be too challenging to remediate, could be secured and used for floating solar panels. Biomass production on ex-mine site: agro waste to energy, woody biomass production on the degraded ex-mine land, short rotation coppice (e,g,, Calliandra and Leucaena).
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  KEY ENABLERS Local champions,both in regional government and communities / local NGOs are a good starting point for initiating discussion around regional sustainable development, community empowerment and economic diversification. Strong company commitment to strike a balance between some conventional development programmes, more focused on physical assistance, and long-term capacity building. Regional economic diversification need to focus on alternative sector with the highest multiplier effect on regional development Successful mine closure needs full participation of the local stakeholders (selecting the right representatives is key). This enables the selection of the best options for design and legal status for post- mining areas.
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  TERIMA KASIH Direktorat SumberDaya Energi Mineral dan Pertambangan Gedung 2A Bappenas Lantai 4 Jl. Taman Suropati No. 2 Menteng Jakarta Pusat 10310 Telp : (021) 31934187 - Faks : (021) 3900362 Instagram : dit.sdemp Email : [email protected] https://www.bappenas.go.id AGENDA PELAKSANAAN TRILATERAL MEETING