Coal as a resource resulted from fossil is an important source of energy for Indonesia. In his presentation at the doctoral promotion session held virtually on Tuesday afternoon (28/12), Dr. Sidik Pramono proposed a dynamic development model(proxy model) of institutional governance in managing coal in Indonesia.
In the model, there are three main subsystem factors that affect the management of Indonesia’s coal system, which are resource availability, supply chain, and also market dynamics. These three things work together and collaborate in influencing Indonesia’s coal governance, both locally and globally.
“The interactions and dynamics that occur are between thegovernment, theprivate sector, and the community. This condition causes a collaborative or hybrid condition, which allows parties to take a role to influence each factor/variable in the governance model,” he said.
Didik added that the factors affecting Indonesia’s coal governance move dynamically, depending on the type of governance used and also the behavior of stakeholders in each subsystem. This dynamic pattern has led to the need for government intervention to prevent market disparities.
“The pattern of relationships between the factors examined in this study shows a tendency for a supply and demand gap in the country. This condition causes the need for government intervention as the representative of the state by formulating directions and policies that emphasize the dominance of hierarchy governance in terms of policy design and implementation,” Sidik explained.
From the alternative scenarios simulated, Sidik explained that this form of government intervention cannot only be done on one side or certain factors, without considering the conditions of the affected actors. “In this scenario, Indonesia’s coal production capacity must be controlled. Produced coal must be prioritized to meet domestic needs first, especially for the needs of power plants that have absorbed the largest allocation of Indonesian coal production,” he said.
This condition is also to provide sufficient transition time to switch to new and renewable energy sources. Coal allocation for export should also be limited, so that the opportunity to increase export capacity will open when the domestic fulfillment target has been achieved and the domestic market capacity has reached a positive point. According to him, all efforts to optimize Indonesian coal require an approach that involves the role of various parties.
The dissertation entitled “Dynamics and Scenarios of Indonesian Coal Governance” was prepared under the guidance of Prof. Dr. Irfan Ridwan Maksum, M.Si. as promoter and Dr. Andreo Wahyudi Atmoko as copromoter and the trial was chaired by the Dean of FAS UI Prof. Dr. Chandra Wijaya, M.Si., M.M.
