Indonesia: Ministry Amends 13 Coal Contracts; 18 More before Next Year

• Nov 15, 2017

TEMPO.CO, Jakarta – The Energy and Mineral Resources Ministry has amended 13 coal business contracts (PKP2B), and plan to amend 18 more before the end of 2017. Energy Minister Iganasius Jonan said that the amendment adheres to the Mineral and Coal Law.

Jonan signed the 13 amendment scripts yesterday. The minister said the amendments will result in a state revenue increase of US$68 million. Before Tuesday, 37 companies have signed the amendment contract.

“[The amendment] is done solely to adhere to the Law’s mandate to increase state revenues,” he said on Tuesday, November 14.

The ministry’s mineral and coal director general Bambang Gatot said that article 169 of Law No.4/2009 on coal and mineral mining.

The 13 PKP2Bs comprises of four first-generation contracts for Arutmin Indonesia, Kaltim Prima Coal, Berau Coal, and PT Kideco Jaya Agung; on second-generation contract under Barasentosa Lestari; and eight third-generation PKP2Bs for Intitirta Primasakti, Juloi Coal, Kalteng Coal, Lahai Coal, Maruwai Coal, Pari Coal, Ratah Coal, and Sumber Barito Coal.

Important issues in the amendment include the area of agreement and continuation of mining operations, contract extension, and state revenues. The changes were made by amending, removing, and adding clauses to the law.

There are 18 more contracts that have to be adjusted. The government is committed to complete the entire amendment process before 2018.

Source: https://en.tempo.co/read/news/2017/11/15/056913251/Ministry-Amends-13-Coal-Contracts-18-More-before-Next-Year