REGULATION AND LIMITING INDONESIAN …coal.jogmec.go.jp/content/300275731.pdfPerjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) UU No. 4 / 2009 tentang Pertambangan Mineral

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

PRO ENVIRONMENT

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

Generation

Year Total Termination

Active Exploration

FS Construction

Production

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

9

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

Trili

un R

upia

h

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 TotalEXPORT (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 KETERANGAN5.

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 Mandatory 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 Mandatory 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

www.minerba.esdm.go.id