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15 Technium Soc. Sci. J. 1 (2021)

handle is hein.journals/techssj15 and id is 1 raw text is: Technium Social Sciences Journal Vol. 15, 1-18, January, 2021 ISSN: 2668-7798 SOCIAL SCIENCES JOURNAL www.techniumscience.com Scenario on Indonesian Coal Governance Sidik Pramono Doctoral Program on Administration Science, Faculty of Administration Science, University of Indonesia sidikpra@gmail.com Irfan Ridwan Maksum Doctoral Program on Administration Science, Faculty of Administration Science, University of Indonesia irm60@ui.ac.id Andreo Wahyudi Atmoko Doctoral Program on Administration Science, Faculty of Administration Science, University of Indonesia atmokowahyudi@gmail.com Abstract. Coal as a non-renewable natural resource is still an important source of energy for Indonesia and is projected to continue into the future. The System Dynamics simulation shows that in 2030, Indonesia is predisposed to experiencing market failure, namely a gap between supply and demand, if referencing only to existing reserves and current production capacity that tends to increase from year to year. The governance of Indonesian coal is a multi-faceted governance whereby various policies, norms, and behavioral patterns as interactions between government, business actors, and communities, either individually or together, can influence the governance of Indonesian coal and which therefore necessitates alternative scenarios to take these factors into account. An ideal alternative scenario is a balance between the gas pedal and brake, as current improvements thus far cannot only be focused on a single aspect or factor. Production capacity must be controlled, whereby level of coal production is prioritized to meet domestic needs first. Next, the allocation of coal for export must be limited. The opportunity to increase export capacity is open when domestic needs have been fulfilled and domestic market capacity has reached a positive point, which is projected to occur after 2040. Keywords. governance, scenario, coal, Indonesia Introduction Coal is a non-renewable resources, as are natural resources derived from other fossils such as oil and natural gas. The Indonesian territory that stem from the collision of three large plates, namely the Eurasian plate, the Indo-Australian plate, and the Pacific plate has received extraordinary blessings. As a result of the collision of the three plates, mountain and volcanic pathways were formed which produced metal mineralization and geothermal energy. In addition, the collision of the large plates also formed many sedimentary basins that have the potential to produce oil and gas, as well as coal. 1

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