OPTIMIZING FUEL MANAGEMENT IN COAL MINING: A DIGITIZATION AT PT. XYZ

Abstract

The production of coal in Indonesia exceeded the target of 694 million tons in 2023, with 766.95 million tons produced, according to the Ministry of Energy and Mineral Resources. However, as a contractor, PT. XYZ has been compelled to be efficient in its operating activities due to market uncertainties and changes in coal prices, particularly with regard to diesel fuel expenses, which make up 19.7% of total costs. Since PT. XYZ's fuel management system does not currently use a digital system, inaccuracies in recording and inefficiencies may occur. The objective of this study is to digitize the fuel management process in order to decrease fuel working losses from -0.65% to -0.40% and enhance the accuracy of the fuel usage records. This research is significant because it provides the mining contractor industry with an improved fuel management system, raises the standard of the fuel management system, increases the accuracy of the company's financial statements, and reduces losses from unnecessary spending. Three research topics are being addressed: how to build a system that enhances PT. XYZ's management of diesel fuel; how to adopt digitization to increase recording accuracy; and how to reduce fuel working losses associated with digital transformation.