INDONESIAN COAL MINING POLICY :
REGULATION AND LIMITING INDONESIAN PRODUCTION
DIRECTORATE GENERAL OF MINERAL AND COAL MINISTRY OF ENERGY AND MINERAL RESOURCES
Bambang Tjahjono Setiabudi
JOGMEC Coal Investment Promotion Seminar Tokyo, 12 November 2014
第４回石炭投資促進セミナー
INTRODUCTION
The 1945 Constitution of Indonesia, Article 33 : The land, the waters and the natural resources within shall be under the power of the State, and shall be used to the greatest benefit of the people .
The Mining Law No.4/2009 : Coal represents non renewable natural wealth and possesses an important role in the fulfilling the needs of life of many people; therefore the management of this resource must be under the control of the State in order to provide real added value to the national economy to achieve prosperity and wealth for the community.
There are some issues regarding management of coal mining business, such as CnC status, limiting production, export and DMO, Registered Exporter of Coal, royalty, and ports for coal export, etc.
Coal resources for the people
wealth
ADDED-VALUE
LOCAL CONTENT HUMAN RESOURCES
CSR
PRO JOB PRO POOR
ENVIRONMENT PRO PRO GROWTH
TRADE BALANCE (PRODUCTION, EXPORT
AND DOMESTIC)
GOOD MINING PRACTICE REKLAMATION AND POST
MINING INVESTMENT
STATE REVENUE
The Role of Coal Mining Business
REGULATION
UUD 1945 Pasal 33 ayat (3)
Bumi dan air dan kekayaan alam yang terkandung di dalamnya dikuasai oleh negara dan dipergunakan untuk sebesar-besar kemakmuran rakyat
Undang-Undang No 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara
Pasal 4 ayat (1): Mineral dan batubara sebagai sumber daya alam yang tak terbarukan merupakan kekayaan nasional yang dikuasai oleh negara untuk sebesar-besar kesejahteraan rakyat.
Pasal 5: Untuk kepentingan nasional, Pemerintah setelah berkonsultasi dengan DPR dapat menetapkan kebijakan pengutamaan mineral dan/atau batubara untuk kepentingan dalam negeri. Kepentingan nasional tersebut dapat dilakukan dengan pengendalian produksi dan ekspor
4
Undang-Undang No 30 Tahun 2007 tentang Energi
Pasal 21: “pemanfaatan energi dilakukan diantaranya dengan mengoptimalkan seluruh potensi sumber daya energi, dan memprioritaskan pemenuhan kebutuhan masyarakat”.
Peraturan Pemerintah No 23 Tahun 2010 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara
Pasal 2: “Pelaksanaan kegiatan usaha pertambangan mineral dan batubara ditujukan untuk melaksanakan kebijakan dalam mengutamakan penggunaan mineral dan/atau batubara untuk kepentingan dalam negeri”
Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B)
UU No. 4 / 2009 tentang Pertambangan Mineral dan Batubara, Pasal 5 ayat (1).
Peraturan Menteri No. 34/2009 tentang Pengutamaan Pemasokan Kebutuhan Mineral dan Batubara untuk Kepentingan Dalam Negeri.
Peraturan Pemerintah No. 23/2013 Pasal 84 ayat (1).
Keputusan Menteri sejak mengenai pedoman pelaksanaan DMO Tahun 2010 - 2014.
Surat DirJen Minerba No. 5055/30/DJB/2013 tentang Teknis
Pelaksanaan Pemenuhan Presentase Minimal Penjualan Batubara untuk Kepentingan Dalam Negeri.
Surat Dirjen Minerba No. 1118/36/DJB/2014 merubah kebijakan DMO untuk kewajiban pasokan sesuai kontrak yang ada, dan jika terjadi kekurangan pasokan batubara ke domestik maka akan
dilakukan penunjukan pemasok.
Peraturan Menteri No. 34/2009 sedang dalam proses revisi.
REGULATION FOR DMO
COAL RESOURCES AND RESERVES
Data 2013: Coal Resources: 121 billion tons + 40 billion tons (U/G) and Coal Reserves: 31 billion tons.
RESOURCES, RESERVES AND COAL RANK
•Coal resources and reserves increase 5% dan 11% , respectively per year
93,40
120,53
31,36
18,71
Coal Mining Business
Generati
on Year Total Terminati
on Active Explorati
on FS Constructi
on Producti on
I 1981-1990 10 1 9 0 0 0 9
II 1994 18 6 12 0 0 0 12
III 1997-2000 113 59 54 4 7 10 33
Total 141 66 75 4 7 10 54
Coal Contract of Work (PKP2B)
STATUS
STAGE
TOTAL EXPLORATION PRODUCTION
C&C 1.444 995 2439
NON C&C 1.032 400 1432
TOTAL 2.476 1395 3871
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INDONESIA’S MINERAL AND COAL INVESTMENT
2.949,0
4.373,6 4.463,4 4.801,2 5.126,2
5.793,4
(Million US$)
PRODUCTION, EXPORT AND DMO
Coal production increases 14% per year.
Domestic consumption should be priority, consuming 20%-25% of the total production with 4% growth per year.
DMO:START IN 2010 235
75
0 50 100 150 200 250 300 350 400 450
2009 2010 2011 2012* 2013**
Rencana 233,6 289,3 273,8 404,7 403,7 Realisasi 238,0 285,6 388,0 427,8
Triliun Rupiah
The realization always above target
In 2012, total state income from EMR sector is Rp. 427,8 trillion (about 28% of national income) and 29% is from mining sector
EMR Sector
Target and Realization of EMR Sector Income
plan Realization Others
Geothermal Mining Oil and Gas
446,92
Contribution of mining to state income increase almost 3 times at the last 5 years.
ENERGY AND MINERAL RESOURCES REVENUE
*) only from CCow and PTBA
KOREA, REPUBLIC OF 2008 2009 2010 2011 2012 2013 Total
EXPORT (TON) 14.594.794 18.361.913 20.684.215 18.899.507 16.541.992 18.560.198 107.642.618
SUPPLIER (only from Ccow)
PT Adaro Indonesia, PT Arutmin Indonesia, PT Asmin Coalindo Tuhup, PT Berau Coal, PT
Indominco Mandiri, PT Insani Bara Perkasa, PT Jorong Barutama Grestone, PT Kaltim Prima Coal, PT Kideco Jaya Agung, PT Lanna Harita Indonesia, PT Mahakam Sumber Jaya, PT Mandiri Inti Perkasa, PT Multi Harapan Utama, PT Multi Tambang Jaya Utama, PT Riau Bara Harum, PT Santan Batubara, PT Tanito Harum, PT Singlurus Pratama, PT Teguh Sinar Abadi, PT Trubaindo Coal Mining, PT Wahana Baratama Mining, ect.
TOP TEN INDONESIAN COAL EXPORT DESTINATION
*)COAL PRODUCTION PLAN (2015 – 2019)
DMO batubara didorong untuk meningkat setiap tahun dengan peningkatan sekitar 8% per tahun yang bertujuan untuk meningkatkan manfaat batubara untuk penggunaan domestik sehingga memberi manfaat yang lebih besar bagi Indonesia. Dengan perkiraan produksi batubara tahun 2015 hingga 2019 yang meningkat 1% per tahun dan peningkatan DMO sebesar 8%/tahun maka ekspor 2015-2019 direncanakan semakin berkurang dengan tingkat pengurangan 1,5%/tahun.
TANTANGAN:
Upaya untuk meningkatkan alokasi batubara untuk pengguna dalam negeri terutama untuk PLN dengan penyelesaian pembangunan pembangkit listrik Tahap I dan pengalihan pembangkit
listrik BBM menjadi pembangkit listrik batubara sehingga batubara akan semakin besar dimanfaatkan untuk kebutuhan energi listrik dan ekspor batubara berkurang.
NO INDIKATOR KINERJA SATUAN 2015 2016 2017 2018 2019 KETERANGAN
5.
a. DMO Batubara Juta Ton 103 111 120 130 140
Persentase 24% 26% 28% 30% 32%
b. Ekspor Batubara Juta Ton 322 318 313 308 302
Persentase 76% 74% 72% 70% 68%
c. Produksi Batubara Juta Ton 425 429 434 438 442 Dikendalikan naik 1% per tahun Pemenuhan Batubara Domestik
Berdasarkan kebutuhan pengguna dalam negeri, naik 8%/tahun Ekspor turun 1,5% per tahun
1
2
3
4 5
POLICY DIRECTION
To provide certainty and transparency in the activities of mining (Mining Law supporting regulations, sanctions violations, etc.)
To implement priority fulfillment of coal domestic needs
To implement supervision and guidance To encourage the increase of investment and revenue
To encourage the development of added-value of mining commodity (eg processing, refining, local content, local expenditure, labor and CSR)
6
To maintain environmental sustainability through environmental management and monitoring
(including reclamation and post-mining)
GOVERNMENT POLICY
COAL FOR DOMESTIC NEEDS
Sources: Decree of the MEMR DMO Determination
• Domestic market is only 20 – 25 % of Total National Production
• Quality for domestic market : 4.000 – 6.500 Kal/Kg GAR
• New DMO regulation will be revised. No more fulfillment of obligations by transfer quota
DMO average for PLN: 64%; IPP: 17%; PLTU non PLN dan IPP : 2 %; Cement, Fertilizer, etc: 16%; and Metallurgy: 1%.
∗ Mining Licence Settlement
– Finalisation of Management System of IUP (MOMI) – Integration to other sectors
∗ Contract Renegotiation (CoW and CCoW)
∗ Finalisation of related mining regulations
∗ Improvement of royalty collection and distribution
LEGAL CERTAINTY AND TRANSPARENCY
Minerba One Map Indonesia (MOMI) is a Geographical Information System (GIS) on web-based built in 2013 by DGMC
The system contains all database of IUP all IUP database in Indonesia (10.922 IUP).
MOMI can integrate all mining data from all over Indonesia (city, regency, province) and data from other purposes.
MOMI can be used as a tool by local government to register proposed WIUP for biding (coal and mineral) or for reserved (non metallic and rocks)
Some advantages of MOMI, can be applied for:
1. Overlapping analysis of existing IUP’s 2. Monitoring data related to mining zone
3. Data collaboration with other institutions on spatial based 4. Data Statistics Analysis related with IUP’s
IMPLEMENT SUPERVISION AND GUIDANCE
MINERBA ONE MAP INDONESIA (MOMI)
ENCOURAGE THE INCREASE OF STATE REVENUE
REGISTERED EXPORTER OF COAL
Regulation:
Minister of Trade Regulation No. 39 / M-DAG / PER / 7/2014 regarding the export of Coal and Coal Products, as amended by Regulation of the
Minister of Trade No. 49 / M-DAG / PER / 8/2014, and Director General of Mineral and Coal No. 714.K / 30 / DJB / 2014 regarding Procedures and Requirements Referral Registered Exporter of Coal;
Purposes:
improving supervision of coal export sales to match the rules
controlling the sale of coal for domestic needs long-term prioritization
optimization of state revenue from coal exports
Issue regulations regarding the selling price of coal
Upfront royalty payment obligations (Director General Circular 04.E / 2013)
Registered Exporter of Coal (ET)
CCoW renegotiation / amendment
UU NO. 4/2009 Pasal 6 Ayat 1 K PP NO. 23/2010 (1 Feb 2010)
Pasal 85
PerMen No. 17/2010 (23 Sept 2010)
PerDirjen No. 515/2011 ttg Formula Harga
Batubara (24 Maret 2011)
PerDirJen No.
644/2013 sebagai perubahan 999.K/2011
ttg Biaya Penyesuaian
(21 Maret 2013)
PerDirJen 480/2014 ttg Batubara
Jenis &
Keperluan Tertentu (30 Mei 2014)
KepDirJen 481/2014 ttg Surveyor
Batubara (30 Mei 2014) KepDirJen
ttg Harga Batubara Bulanan
HBA HPB Marker &
lainnya HPB
Coking Coal KepMen No.
0617/2011 ttg Harga Batubara
ke PLN (3 Maret
2011)
Hard Coking Semi Soft Coking Pulverised Coal Injection
Catatan :
Untuk PKP2B diatur dalam Kontrak PKP2B Pasal 12 / 13
Pasal 11 Ayat 4 Pasal 13 Ayat 4 Pasal 21 Ayat 4 Pasal 12 Ayat 5
PerDirjen 1348/2011 ttg Harga Batubara untuk
Pembangkit Listrik Mulut Tambang (9 Des 2011) Pasal 21 Ayat 4
COAL PRICE POLICY
PerMen 10/2014 (4 April 2014)
Kepdirjen 479/2014 (30 Mei 2014) diperbarui Surat Dirjen 1619/2014 (22
Sept 2014)
Kepdirjen 479/2014
OPTIMALIZATION FOR CONTROLLING PRODUCTION DAN MARKETING
KEBIJAKAN PERKEMBANGAN SAAT INI
Pendataan produksi dan penjualan berbasis IT. Kajian dengan Sucofindo Penerapan sangsi terhadap ketidakpatuhan
pelaporan.
Penyusunan Permen
Pencegahan kebocoran royalti dengan pembayaran dimuka.
Penyusunan Permen;
Penerapan ET
Penyusunan database perusahaan pengekspor batubara.
Penerapan ET
Penyusunan format pelaporan pembayaran royalti dengan lampiran perhitungan royalti dan pembanding harga dengan HPB.
Penyusunan Permen
Peningkatan koordinasi antar lembaga pemerintah.
Penerapan ET
Pengawasan kegiatan survey dengan ditunjuknya surveyor witness.
Kerjasama dengan Puslitbang Tekmira
Pengaturan pelabuhan ekspor batubara. Koordinasi dengan Ditjen Perhubungan Laut
INCREASING NON-TAX STATE REVENUE (PNBP) REGISTERED EXPORTER OF COAL
Regulation:
Minister of Trade Regulation No.39/M-DAG/PER/7/2014 regarding the export of Coal and Coal Products, as amended by Regulation of the Minister of Trade No.
49/M-DAG/PER/8/2014, and Director General of Mineral and Coal
No.714.K/30/DJB/2014 regarding Procedures and Requirements Referral Registered Exporter of Coal.
Purposes:
Improving supervision of coal export sales.
Controlling coal sale for domestic needs (long-term).
Optimalization of state revenue from coal exports.
Royalty tariff will be increased for Mining Business Permits.
Royalty payment before shipment.
Coal Exporter Certificate (ET)
Gas Chemical Feedstock
DIRECT USE Power Plant
Industry
CONVERSION
Liquefaction Gasification
Liquid
Clean Coal Technology
UPGRADING High Rank Coal
LOW RANK COAL
Cokes
Active Carbon
COAL
CWM
IMPROVEMENT OF ADDED VALUE
• Scarcity of coal threat due to coal supplier prefer to export due to price differecdne
• No regulation of DMO
• PLN said to import coal
• UU 4/2009 issued as a new era of mining Condition 2007-2009
• DMO should be applied
• Target UKP4 of 2009 to issue GR of DMO
Condition 2010-2013
- GR. 34/2009 main content:
1. Determination of DMO 2. Transfer quota;
3. DMO price;
4. Monitoring and sanction
- DMO Implementation rising from year to year : 1. 2010 (36 PKP2B, 1 BUMN dan 6 IUP OP);
2. 2011 (42 PKP2B, 1 BUMN dan 10 IUP OP);
3. 2012 (40 PKP2B, 1 BUMN dan 22 IUP OP);
4. 2013 (45 PKP2B, 1 BUMN dan 28 IUP OP);
5. Plan2014 (50 PKP2B, 1 BUMN, and 34 IUP OP);
- Weakness of DMO:
1. Complicated administration process 2. Surveyor regulation not yet issued 3. Human resources, etc
FUTURE POLICY
DMO without transfer quota mechanism, with contains three aspects:
1. Planning of DMO (quantity and quality) 2. Prevention of coal scarcity
3. Action on emergency condition (coal scarcity)
• GR NO 34 /2009 about mineral and coal for domestic need
PRIORITY OF COAL FOR DOMESTIC NEEDS
East Kalimantan 1. Balikpapan bay 2. Adang Bay 3. Berau Bay 4. Maloy Bay
South Kalimantan 1. Tobaneo/Pulau laut, 2. Sungai Danau, 3. Batu Licin Lampung
Tarahan Sumsel
Tanjung Api Api Jambi
Jambi Bay Bengkulu Bengkulu Port
West Sumatera Padang
Riau Riau Bay Aceh
Aceh Selatan.
∗ Transhipment only be done around the coal main port and can be directly seen from the port (maximum of about 2 km from land).
∗ Coal Main Port concept has been applied in various countries, such as Australia, South Africa etc.
∗ Given a transition period after the decree ban on transhipment at sea for a maximum of 3 years (coal main port development).
∗ Coal main port owned by private or state-owned companies / enterprises with locations specified by the Director General / Minister.
∗ Coal exports through coal main port only.
DEDICATED PORTS FOR COAL EXPORT (PROPOSED LOCATIONS)
DEREGULATION
No Instansi
Jenis Perizinan
Izin Persetujuan Rekomendasi/
Sertifikasi Jumlah Perizinan Tiap Instansi Mandator
y Optional Mandatory Optional Mandatory Optional 1 Kewenangan
KESDM 3 6 8 7 2 0 26
2
Kewenangan ESDM +
Kementerian Lain
0 2 0 9 0 9 20
3
Kewenangan Kementerian Lain/PEMDA
11 9 1 1 3 0 25
JUMLAH IZIN 14 17 9 17 5 9 71
USULAN
Kewenangan KESDM Kewenangan KESDM + Kementerian Lain Kementerian Lain/PEMDA
No Instansi
Jenis Perizinan
Izin Persetujuan Rekomendasi/
Sertifikasi Jumlah Perizinan Tiap Instansi Mandator
y Optional Mandatory Optional Mandatory Optional 1 Kewenangan
KESDM 4 12 24 13 2 1 56
2
Kewenangan ESDM +
Kementerian Lain
0 2 0 9 0 9 20
3
Kewenangan Kementerian Lain/PEMDA
11 9 1 1 3 0 25
JUMLAH IZIN 15 23 25 23 5 10 101
EXISTING
