BI: Coal replaced by renewable energy

Banjarmasin,  (Antaranews Kalsel) - Head Representative of Bank Indonesia for South Kalimantan Harymurthy Gunawan again reminded the world in the long term will replace coal with renewable energy, so that local government should explore new economic potentials from non-mining sector.

Hary in Banjaramsin on Friday said rising coal prices accompanied by an increase in export volumes today still become source of economic growth in South Kalimantan.

But, he added, the price increase is estimated only in short term, then the sector can not be used as the main support for the development of medium and long term.

According to Harry, the coal price increase will be faced with the challenge of the use of "renewable energy" and the environmental conservation campaign will be one of the factors to falling prices.

In addition, developed countries would prefer a future energy sources, which currently uses renewable energy compared to fossil energy sources.

Thus, he said, in the long term will emerge a new economic supporting, such as shale gas technology, while coal is expected to be replaced by a cleaner renewable resources.

To address these conditions, he suggested, economic growth through downstream strategy as key to stimulate the economy.

"The potential industry here is agro-industry, as stated in South Kalimantan Medium Term Development Plan
 (RPJMD) 2016-2021. South Kalimantan plays an important role in upstream industry for plantation, and to the future is downstream agenda," he said.

As for mining, construction, LGA and other services will only be a supporting sector for economic growth towards more sustainable and environmentally friendly.