APBI Highlights Dynamics and Future Challenges of the Coal Industry

JAKARTA – Indonesian Coal Mining Association ( APBI ) highlights the dynamics and future challenges of the coal industry in the midst of a leadership transition period.

General Chairperson of APBI 2021-2024 Pandu Patria Sjahrir highlighted the various challenges of the coal mining industry that occurred during the last decade covering three terms of his leadership. He emphasized critical issues such as mandatory domestic coal supply (DMO) and coal pricing aimed at the electricity sector.

“APBI tries to be present in receiving various complaints and input from members and communicating with the government, looking for the best way so that every challenge faced can be resolved, while prioritizing national and social needs,” said Pandu at the APBI Member Conference in Jakarta, Thursday (2/5/ 2024).

Furthermore, he underlined the important role of legislation in directing industry, especially since the enactment of Law no. 3 of 2020 concerning Minerals and Coal which transfers a number of authorities from regional governments to the central government. “This transition not only impacts the growth of association membership but also brings new regulatory dynamics to the industry,” he added.

During his term of office, Pandu said that APBI-ICMA had handled various issues, including meeting domestic coal needs, royalties, reference coal prices, obligations to use ships and national insurance, foreign exchange proceeds from exports, and ship to ship transfer issues in Muara Berau. , processing AMDAL, and much more.

“The role of associations is not only limited to solving problems, but also includes knowledge sharing initiatives and establishing guidelines for the common good,” he explained.

Apart from that, Pandu revealed that the implementation of environmental, social and governance (ESG) aspects can no longer be separated from business, especially coal mining. Aligning the vision and mission for implementing good and sustainable mining governance, as well as prioritizing environmental and social aspects is also always echoed and is an obligation that must be carried out by all members.

“No less important now is how the association plays a role in aligning with the Indonesian Government’s mission in the era of energy transition and efforts to achieve the target of net zero emissions by 2060. The energy transition is no longer a discourse but is in sight,” he said.

Pandu, who has led this association for almost a decade since he was first elected in 2015, handed over the leadership relay to Priyadi, who is currently President Director of Adaro Indonesia. Pandu hopes that the management of APBI-ICMA in the future can be more solid in resolving important issues that arise and present as a forum for communication between members. Not only the management but the involvement of members in providing input is the main key to the success of an association.

(nng)