Gov’t Signs Contract Amendments for 13 Coal Miners

Telly Nathalia
November 16, 2017 | 10:31 am
SHARE

Jakarta. Energy and Mineral Resources Minister Ignatius Jonan signed contract amendments for 13 coal miners on Tuesday (14/11), leaving another 18 miners amid negotiations, as required by the 2009 Mining Law, a ministry statement said.

Bumi Resources, Kaltim Prim Coal (KPC), Berau Coal Energy, Kideco Jaya Agung and Arutmin Indonesia agreed to switch their contracts of work (CoWs) to coal contracts of work (PKP2Bs).

"There are 18 [contract amendments] again. I hope before the end of 2017, all will be finalized," Ignatius said.

The Indonesian government began negotiations to change the format of coal miner contracts with 68 operators in 2010. With the signing of the PKP2Bs for the 13 coal miners, the country has succeed in negotiating with 50 coal mine operators.

Those miners agreed to post mining guarantees. From the agreement of those contract amendments, "state income will rise $68 million," Jonan said.

Advertisement

Meanwhile, Bambang Gatoto Ariyono, director general of minerals and coal at the ministry, explained that the forecast of rising state income from the new contracts is based on calculations of state income from the first phase of the PKP2B contracts that will see $4 per hectare in generated taxes, up from a previous $1 per hectare. Miners will contribute 13.5 percent from their total coal production income to the state.

Tags: Keywords:
SHARE

The Latest


News 7 hours ago

At Least 60 Killed in Israeli Strikes as Gaza Aid Remains Scarce

At least 60 killed in Gaza strikes as Israel allows limited aid amid global pressure and UN warnings of looming famine.
Business 7 hours ago

Benzoin Resin Touted as Next Big Commodity in Indonesia’s Downstream Strategy

Luhut Pandjaitan says benzoin resin, or kemenyan, holds untapped potential for Indonesia’s downstream strategy and rural economic growth.
Business 7 hours ago

Trump Threatens 50% Tariffs on EU, 25% on Apple iPhones Made Abroad

Trump threatens 50% tariffs on EU goods and 25% on Apple products unless iPhones are made in the US, escalating his trade war.
News 9 hours ago

Minister Shuts Down Tangerang Steel Plant Over Toxic Smoke Emissions

The facility, operated by Power Steel Mandiri in the Cikupa Industrial Complex, was found to be emitting hazardous air pollutants.
Business 11 hours ago

Shell’s Exit from Indonesia Fuel Retail Not a Sign of Energy Sector Decline, Says Minister

Energy Minister Bahlil Lahadalia says Shell’s sale of Indonesian fuel stations is a normal business move, not a worsening energy sector.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED