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The Urgency of Coal Production Needs Amid the World Energy Crisis

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We should be grateful that the peak of the COVID-19 pandemic has passed. Currently, people economic activity is gradually recovering. However, we must be aware that due to the recovery in economic activity has led to a surge in energy demand. Our current problem is that the high energy demand spike is not matched by domestic energy supply or production. This has also affected a number of countries in Asia, Europe, and even the United States, which are struggling to deal with the energy crisis.

In China, for example, local governments have ordered coal mining companies to increase production. It aims to overcome the current electricity crisis. The electricity crisis has hit about 20 provinces in China. This crisis also forced several factories in the Bamboo Curtain country to stop their production activities.

Just like China, India is also forced to face an energy crisis. Currently, most of India's coal-fired power plants only have a low supply of coal, so it is predicted to trigger an electricity supply crisis. Coal accounts for about 70% of India's total electricity generation.

Then, what about Indonesia? Fortunately, the Indonesian government has ensured that domestic energy supplies are still secure. The Ministry of Energy and Mineral Resources (ESDM) noted that domestic coal production until September 2021 had reached 450 million tons. Coal production is projected this year to reach 610 million tons. The government also predicts that domestic coal demand will remain high until 2050.

Of course, coal will continue to play a role in energy security and our national and global energy mix in facing a more sustainable future. Various technologies have been developed today to ensure a more sustainable and environmentally friendly use of coal, including clean coal, green coal and carbon capture technologies. Together with new and renewable energies such as sun, wind, geothermal, water, bio energy, ocean waves, and others, coal will continue to support human progress to build better civilization and future for future generations.

By: Corporate Communications PT ABM Investama Tbk.