Strengthening of the Coal-Gasification Industry: Evidence from Indonesia

Abstract

The purpose of this research is to analyze Indonesia's coal-gasification industry policy. This research needs to map the undeveloped coal-gasification industry. In fact, the coal-gasification industry can increase the economic value of coal, increase local income, absorb the labor force, and reduce pollution. It also has some strategic roles in national fiscal revenue and foreign exchange reserves and is of great significance to regional development. The research methods used are quantitative and qualitative. The results of this study indicate that government needs to provide some financial incentives for the coal-gasification industries, especially for pioneer companies for having coal-gasification works, and ensure that policies taken will be able to encourage economic growth and investment in Indonesia’s coal-gasification industry. To support investment in the coal-gasification industry, it is necessary to formulate policies and rules to provide a sign for its implementation.