The Role of Coal Mining for the Indonesian Economy

 

 


The coal mining industry sector for the past few years has played a major role in supporting development in Indonesia. The coal mining industry sector supports development in various economic sectors, namely by contributing to state revenues, entering foreign exchange through exports, supporting electrification and national energy security. The contribution of the coal mining industry sector to state revenues comes from the payment of taxes including royalties. In addition, the role given is to create jobs.

Viewed from the negative side, the impact of the coal mining industry is very influential on the natural environment and local communities, as we know coal mining will cause environmental damage with high levels of pollution, it can also rob economic, social and cultural rights, especially the community around the mine if many mining activities are not carried out. sustainable.

The coal mining industry sector has contributed to state revenue, although it has not been as big as other mining contributions. Coal mining activities in Indonesia have the potential to provide enormous economic benefits for the domestic economy. These benefits can be in the form of Gross Domestic Product (GDP), household income and employment opportunities at both national and regional levels. In addition, coal mining activities play a role in state revenues in the form of various types of taxes, royalties and levies.

Meanwhile, the benefits of coal mining for the macro economy can certainly be calculated from the sales value, added value, worker income and employment by mining companies. However, we need to pay attention that there is a mechanism of economic linkage, mining activities have a multiplier effect on the economy. Therefore, as a result of mining activities there will be a lot of growth and development of units of economic activity. The development of these units of economic activity is very likely to provide enormous economic benefits.

Meanwhile, the development of Indonesia's coal mining production in the last decade has also shown an increase. As one of the important sectors in Indonesia's development, the mining sector still contributes to the national Gross Domestic Product (GDP).

It is undeniable that the mining industry and its supporting industries have contributed to the economy and/or income for the central government, regional governments, and the community in the form of taxes, levies, donations, and employment, although not as big as other sectors (agriculture, manufacturing, and other services).

In addition to providing support to the economy, the coal mining sector contributes to job creation. The jobs created are not only in the coal mining industry itself but also downstream, encouraging the creation of jobs in the mining support service industry sector, such as mining contractors and transportation service providers. In addition, the coal industry creates informal employment opportunities around the mine, the benefits of which are felt especially by the local community.

Published by the Central Statistics Agency (BPS), the estimated number of workers in the coal mining sector is 70% of the mining and quarrying sector. This is because coal mining is a labor-intensive industry.

Regarding job opportunities, the coal mining industry also pays attention to the development of workforce capabilities. A good work program is needed to improve the skills of the workforce, such as heavy equipment operators and operational support staff, which are growing in line with the development of the coal industry sector. The program provides many benefits, especially to regions with the availability of skilled workers. With the growth of a trained workforce, it will encourage the growth of other industrial sectors. The coal mining industry has a significant role in supporting development at the national and regional levels. The contribution to regional development is quite clear, especially for equitable development outside Java as mandated by the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). The presence of mineral and coal resources, which are generally located in remote areas in eastern Indonesia and partly in Sumatra, has made the coal mining sector the prime mover for the development of several areas outside Java.

The Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) was conceived in 2008, when President Susilo Bambang Yudhoyono, along with other national figures, began to generate ideas about Indonesia's long-term economic development plan. Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI), which is a development plan with a vision that Indonesia will become the tenth largest economy in the world by 2025, with a per capita income of US$ 15,000, from currently only US$ 3,000. The method? By increasing infrastructure development, establishing regulations that facilitate investment, providing incentives for actors in economic activities, to developing related science and technology for each type of industry. In general, these efforts are known as debottlenecking, namely efforts to 'break the neck of the bottle' so that development in Indonesia can flow smoothly and no longer be hampered by tedious bureaucracy, and the like.

 

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