Embed Size (px)
DESCRIPTION
Indonesia has grown to become the world’s largest exporter of steam coal. Its production has increased from 77 million tons in 2000 to 353 million tons in 2011. The Indonesian part of Borneo Island (Kalimantan) has become the main coal producing center in the country. Between 2000 and 2011, coal mining concessions in Kalimantan expanded from 1.5 million ha to about 13 million hectares. So far, the extent of forest loss because of coal mining has been limited and is much lower than that caused by oil palm. However, this is largely because small scale mining concessions, which form the majority of the mining concession area allocated, are yet to be activated. Because the legal framework encourages expansion and growth in coal production, the pressure on forest may increase if small mining concessions become fully operational. This may happen if the demand for coal in China and India, currently the main driving force behind the growth of coal mining in Indonesia, expands as predicted. Domestically, the privileged treatment of the coal mining sector as a strategic part of Indonesia’s long term development plan is a potential threat to forests as well. New policies limiting the intensity of coal mining, seeking to add value, and limit environmental damage are needed to guard against long term environmental and social damage.
Citation preview
THINKING beyond the canopy
Investment across sectors and at the
landscape level - the case of coal mining in
Kalimantan, Indonesia Ahmad Dermawan, David Gaveau, Erik Meijaard, Krystof Obidzinski
Bogor, 13 March 2013
THINKING beyond the canopy
Production is predicted to increase
0
100
200
300
400
500
600
700
2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Mill
ion
to
ns
• Coal production has increased by triple in 2004-2011
• Predicted to double in 2018
Sources: MEMR and BMI
THINKING beyond the canopy
Most of the coal is exported
Source: Ministry of Energy and Mineral Resources
0
50
100
150
200
250
300
350
400
2004 2005 2006 2007 2008 2009 2010 2011
Mill
ion
to
ns
Production Export
Approximately 60% of Indonesia’s exports go to China and India
THINKING beyond the canopy
But domestic use is driving
Government national energy policy: increasing coal in the
national energy mix
Increased demand from power sector, esp. for outer
islands
Oil, 52%
Coal, 15%
Gas, 29%
Hydro, 3% Geothermal, 1%
Energy mix 2006
Oil, 20%
Coal, 33%
Gas, 32%
Hydro, 5%
Geothermal, 5%
Biofuel, 5%
Energy mix 2025
THINKING beyond the canopy
Coal reserves in Indonesia
Sumatera and Kalimantan have the highest reserves
52.5 BT 52.3 BT
14.2 MT
233.1 MT 128.6 MT
2.1 MT
Source: Ministry of Energy and Mineral Resources 2012
THINKING beyond the canopy
Economic importance of coal mining
85% of national mining revenues comes from coal
Approximately 35% of East Kalimantan’s GRDP comes
from coal
6%
50% 23%
0%
3% 8%
4% 2%
4%
Agriculture Mining and quarrying Manufacturing industries
Electricity, gas and water supply Construction Trade, hotels and restaurant
Transportation and communication Financial, leasing and business services Services
THINKING beyond the canopy
Coal mining in Kalimantan
• Multiplication of large scale operations since 2000
• Mostly in East and South Kalimantan
THINKING beyond the canopy
Coal expansion
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
2
4
6
8
10
12
14
Nu
mb
er
of
pe
rmit
s
Mill
ion
ha
Cumulative area (ha) Permits (cumulative)
THINKING beyond the canopy
Mining scars
THINKING beyond the canopy
Small scale mining
Small scale coal
mining permits
issued by Regents
are understudied
Source: LITBANG Kompas, JATAM, Greenpeace
District Mining rights Area (ha)
Malinau 7 11,114
Nunukan 22 70,112
Tanatidung 2 5,000
Tarakan
Bulungan 33 136,153
Berau 68 224,060
Bontang
Samarinda 76 27,556
Balikpapan
Kutai Kartanegara 687 1,237,374
Kutai Timur 38 670,549
Kutai Barat 138 395,486
Penajam Paser Utara 36 86,307
Pasir 73 248,978
Total 1,180 3,112,690
THINKING beyond the canopy
Potential challenges
Significant potential for future deforestation:
3.2 million ha of land allocate for large scale exploration and exploitation in East & South Kalimantan
40% of this is forested (1.3 million ha)
Large portion of small scale permits in forested areas as well (since 2010 no new small scale permits issued)
Mining get priority over other land uses:
Permenhut No.P.18/Menhut-II/2011 on Guidelines for the use of forest estate for mining
Permenhut No.P.14/Menhut-II/2011 on timber utilization permits (IPK) for mining companies
Large new coal concessions (hundreds of 000s of ha) as 15-20% can be clear-cut (timber) for mine development
THINKING beyond the canopy
Concluding remarks
Coal mining is a growing sector in Indonesia, but have
the potential to be a major driver of deforestation
Demand for coal is rising, driven by growing demand for
energy in the Asia-Pacific as well as from domestic
consumers
Indonesia is stepping up production and export; it’s
getting jobs but it’s loosing revenues and forests
Major large scale expansion plans is underway, but small
scale expansion is often understudied.
THINKING beyond the canopy
www.cifor.org
![Mer for optimum allocation accross investment alternatives [autosaved]-gfc-office-gfc-office-gfc-office-gfc-office](https://img.pdfslide.net/doc/110x75/58e91bcf1a28ab6e0e8b5dbd/mer-for-optimum-allocation-accross-investment-alternatives-autosaved-gfc-office-gfc-office-gfc-office-gfc-office.jpg)
![Torontos ict sector_-_10-25-2012-nasscom_presentation_v2[1]](https://img.pdfslide.net/doc/110x75/54bef0c94a7959811e8b4640/torontos-ict-sector-10-25-2012-nasscompresentationv21.jpg)
