ESDM Ministry Signs Amendment 1 KK and 18 PKP2B, State Revenue Will Increase

INDUSTRY.co.id - Jakarta - The Minister of Energy and Mineral Resources (ESDM), Ignatius Jonan signed a Manuscript of Amendment of Contract of Work (KK) and 18 Manuscripts of Amendment of Work Agreement on Coal Mining Concession (PKP2B). Negotiations have been implemented by the government since 2010 against 31 families and 68 PKP2B.

With this signing, there are 22 families and 68 PKP2B who have signed the amendment document and still have 9 households who have not made adjustments to Law Number 4 Year 2009.

"This is a joint work in order to comply with the Minerba Act, with the time I began to be assigned here 15 months ago, hardly any amendment, very little, I say with Director General, the principle of amendment is solved according to the law, so try to involve all parties," said Minister of EMR in Jakarta, Wednesday (17/1/2018).

In addition to implementing the mandate of the law, the signing of the amendment also provides additional state revenue. "With this amendment the company which was formerly KK and PKP2B will be state recipients will increase 300 M or about USD 27 million .Last year minerba royalty more than 40 trillion, it means an additional about 1%, but more important is how the mandate of the Act run well ," he said.

On the occasion, Minister Jonan also advised the companies present today to involve the surrounding community to benefit more from the cultivated mining activities. "It is important (to guard) that no social upheaval happens, involve the local community, not just CSR but fully involved, (even) a way of live for them," he said.

Meanwhile, in his report, Director General of Minerals and Coal (Bambang Gatot Ariyono) stated that the Amendment of Contract of Work signed today is KK Generasi III while 18 amended PKP2B consists of 2 PKP2B Generation I and 15 PKP2B Generasi III, with details as following:

PT Indo Muro Kencana (KK Generasi III)
PT Adaro Indonesia (PKP2B Generation I)
PT Kendilo Coal Indonesia (PKP2B Generasi I)
PT Batubara Duaribu Abadi (PKP2B Generasi III)
PT Firman Ketaun Perkasa (PKP2B Generasi III)
PT Insani Baraperkasa (PKP2B Generasi III)
PT Interex Sacra Raya (PKP2B Generasi III)
PT Lanna Harita Indonesia (PKP2B Generasi III)
PT Mantimin Coal Mining (PKP2B Generasi III)
PT Multi Tambang Jaya Utama (PKP2B Generasi III)
PT Pendopo Energi Batubara (PKP2B Generasi III)
PT Perkasa Inakakerta (PKP2B Generasi III)
PT Santan Batubara (PKP2B Generasi III)
PT Sarwa Sembada Karya Bumi (PKP2B Generasi III)
PT Singlurus Pratama (PKP2B Generasi III)
PT Tambang Damai (PKP2B Generasi III)
PT Teguh Sinar Abadi (PKP2B Generasi III)
PT Wahana Baratama Mining (PKP2B Generasi III) PT Kalimantan Energi Lestari (PKP2B Generasi III)

The location of 1 KK and 18 PKP2B are as follows: 1 (one) HH in Central Kalimantan Province; 1 (one) PKP2B in Jambi Province; 5 (five) PKP2B in South Kalimantan Province; 2 (two) PKP2B in Central Kalimantan Province; 10 (ten) PKP2B in East Kalimantan Province; and 1 (one) PKP2B in South Sumatera Province.

Broadly speaking there are 6 strategic issues that are amended in relation to the Agreement Territory, Mining Operation Continuation, State Revenue, Processing and Purification Obligations, Divestment Obligations, and Obligation of Employment, Domestic Goods and Services.

For Generation I PKP2B, there is an increase in state revenues from the original fee of USD 1 / Ha to USD 4 / Ha, Coal Production Fund (DHPB) of 13.5% previously in the form of coal (in kind) to cash (in cash) and IPEDA (lumpsum payment) calculated using UN prevailing formulations. As for PKP2B Generasi III, there is an increase in state revenue from the Coal Production Fund (DHPB) of 13.5% in cash (cash) and fixed fee and PBB following the provisions of legislation.

Under these provisions, state revenues in 1 HH and 18 PKP2B signed Agendary Amendment Paper today have increased by approximately USD 27 Million per annum so as to comply with the mandate of Law No. 4 of 2009. In renegotiating the contract amendments, the two the Government and the Company are based on good faith, and the spirit to contribute to national development for the sake of prosperity of the people.