“Do not let this request to increase production strengthen the government’s suspicion of being weak against intervention from companies and business actors,” said Publish What You Pay Indonesia (PWYP) Agung Budiyono.

The Ministry of Energy and Mineral Resources (ESDM) plans to boost coal production by 15.7%. This contradicts the 2015-2019 National Mid-Term Development Plan (RPJMN) and the National Energy General Plan (RUEN), which mandates coal production restrictions.

The request for an increase in coal production was stated in the Ministry of Energy and Mineral Resources’ letter to the Ministry of National Development Planning / Bappenas, a copy obtained by Katadata. The letter dated 19 May 2017 states that the Ministry of Energy and Mineral Resources plans to increase coal production this year to 477.91 million tons from the previous National Mid-Term Development Plan (RPJMN) for 2015 – 2019, which was 413 million tons.

Of the 477.91 million targets, 340.81 million tons came from the Coal Mining Exploitation Work Agreement (PKP2B), State-Owned Corporation Mining License, and Foreign Investment Mining License. At the same time, the rest is coal production from regional Mining License.

The desire to increase production is in line with discussing the work plan and budget (RKAB) between the Ministry of Energy and Mineral Resources’s Directorate General of Mineral and Coal and investors. Among them are the coal mining exploitation work agreements (PKP2B), State-Owned Corporation Mining Business Permits, and Foreign Investment Mining Business Permits.

One of the considerations to increase production is the production capability of each company. However, this has received the spotlight of several parties, including Coal Governance Researcher from Publish What You Pay Indonesia (PWYP) Agung Budiyono.

Agung suspects that the government’s plan to increase coal production is due to pressure from business actors. “Do not let the request to increase production strengthen the government’s suspicion of being weak against interventions from companies and business actors,” he said to Katadata, Monday (17/7).

These investors allegedly wanted an increase in production to compensate for the decline in profits over the last few years. The reason behind the decline in investors’ profits is the drop-in coal prices.

According to Agung, the government should be consistent with the policies and plans that have been made. They can formulate a special strategy to regulate Coal Mining Concession Work Agreement (PKP2B) and Mining Business Permit (IUP) in the province to comply with production restrictions so that coal production restrictions remain following the National Mid-Term Development Plan (RPJMN) and the National Energy General Plan (RUEN).

There are two important things in order for the policy to limit coal production to run. First, we need to be serious in changing the paradigm of energy management, which is no longer depending on the massive use of fossil energy such as coal.

Second, strong political will in implementing policies. “If the political will is strong, there should be no room for compromise from other interest groups,” he said.

Merah Johansyah Ismail, Coordinator of the National Mining Advocacy Network (JATAM), also criticized the government’s plan to increase coal production. “Do not let the National Mid-Term Development Plan (RPJMN) and the National Energy General Plan (RUEN) become just documents but far from being implemented, and coal restrictions are just a dream,” said Merah based on the official broadcast received by Katadata, Monday (17/7).

The Ministry of Energy and Mineral Resources (ESDM) has not responded to this matter. The Head of the Communication Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources, Sujatmiko, has not responded to the Whatsapp that Katadata delivered on Monday (17/7).