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October 23, 2020, 08.26 PM

JAKARTA, – 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.

Read also: Deaths of Six Miners Highlight Unsafe Mining Practices in Indonesia

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.

Read also: Labor Union Wants Chinese Expat Workers Flown into South Sulawesi be Sent Home

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

Jokowi has also requested for the use of eco-friendly technologies in optimizing Indonesia’s coal production processes.

“Decide on a strategy and decide on a downstream and upstream product that we want to focus on. We will have better direction on where to while also knowing how much of our coal can be processed into gas and petrochemical products,” instructed Jokowi.

Read also: Indonesia Aims to Reach Upstream Oil and Gas Sector Target Next Year

To further shape the coal industry in Indonesia, President Joko Widodo gave further instructions to map out zones that can be developed for the country’s downstream coal sector and assess which regions have an adequate supply of coal to ensure a smooth-running downstream coal production process.

“This is a big strategy and we must be consistent in its execution,” said President Joko Widodo.

(Writer: Ihsanuddin | Editor: Kristian Erdianto)


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