Strengthening Foreign Exchange, Ministry of Energy and Mineral Resources Require Minerba Industry Actors to Transact with Domestic Banks

By : Hariyanto And Aldo Bella Putra | Monday, September 10 2018 - 19:00 IWST

Tambang Batubara (ist)
Tambang Batubara (ist)

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) requires all mineral and coal industry players to carry out export transactions using domestic bank accounts.

It aims to return the entire proceeds of sales to the country while strengthening the country's foreign exchange.

The policy will be implemented from September 5, 2018 as stipulated in the Minister of Energy and Mineral Resources Decree Number 1952/84 / MEM / 2018 concerning the Use of Domestic Banking or Indonesian Banking Branches Abroad for Mineral and Coal Sales Abroad.

"The spirit must be entered into a national foreign exchange account that has the authority from Bank Indonesia," explained Director General of Minerba, Bambang Gatot Ariyono at the Coffee Morning: Socialization of the Decree of the ESDM Minister in Jakarta, Friday (09/09/2018).

There are six criteria that are obliged to carry out the Government's decision, namely the holders of Mining Business Permits (IUP), Special Mining Business Licenses (IUPK), Contracts of Work (KK), Coal Mining Exploitation Work Agreements (PKP2B), Production Operation Mining Permits specifically for processing and / or refining, and a Production Operation Mining Business License specifically for transportation and sales.

In the process of payment for the proceeds of mineral and coal exports, the company must also use a Letter of Credit (LOC), which is a type of statement on request at the request of the buyer or importer to the salesman or exporter to expedite and facilitate the flow of goods. The LOC will be issued by the Ministry of Finance and the Ministry of Trade.

If the policy is ignored, the Government has the authority to revoke recommendations for mineral export approval and registered coal exporters to the mining industry. Later, the Ministry of Energy and Mineral Resources will adjust the Work Plan and Budget (RKAB) in the following year to the mining industry players after the revocation recommendation has been decided.

Different sanctions are the holders of a special Production Operation Mining Permit for transportation and sales. They will get a warning or a written warning even to temporarily stop business activities if they still do not comply with the rules.

The presence of this new library gives the Government the authority to supervise transactions resulting from mineral and coal sales which have only been carried out by Bank Indonesia (BI). Every month, the Ministry of Energy and Mineral Resources will now receive periodic reports on export sales from mining companies.

"For September 2018, I want the payment transaction (export) from January to September 2018 to be reported. For the next, a (submitted) monthly report," added Bambang.

News Comment

Today's Industry

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…