Establish Downstream Coal Sector Now, Indonesian President Instructs Cabinet

JAKARTA, KOMPAS.com – President Joko ‘Jokowi’ Widodo expressed his desire to stop Indonesia’s coal export and instead to begin establishing a downstream coal sector.

“I would like to remind everyone that we have to switch our position as an exporter of natural resources, including coal, to an industrial nation with the capacity to process our own resources into manufactured goods or semi-finished goods,” Jokowi said during a meeting on ‘Accelerating the Added Value of Coal’ on Friday.

To ensure the domestic processing of coal, Jokowi has instructed his cabinet ministers to start focusing on the downstream sector.

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The Indonesian President has called for the industry to concentrate on improving quality standards, smelting process, coal gasification, coal bricks manufacturing, and the production of coal-water mixtures.

Jokowi is confident that by targeting those activities, Indonesia’s downstream sector will be enhanced, thus propelling its ability to produce value-added commodities.

Moving away from coal exports to advance its downstream coal sector gives Indonesia the chance to reduce its reliance on imported raw goods typically demanded by the country’s steel and petrochemical industries.

“Most importantly, improving the downstream sector will open up numerous job opportunities,” said the President.

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The country’s cabinet ministers have been asked to create a roadmap that would optimize the use of coal in Indonesia.