Minister for Energy and Mineral Resources Ignasius Jonan is delivering a speech before witnessing the signing of contract amendments (Image credit : ESDM Ministry)

JAKARTA (TheInsiderStories) – The Indonesian government will be paid an additional US$27 million per annum following the signing of 19 contract amendments with mining companies, a compromise finally achieved after a lengthy negotiation process.

The amendment of contracts, signed on Wednesday (17/01), was mandated by the Law on Mineral Resources and Coal, which was enacted in 2009. The amendment was the latest contract amendment. Some operators have signed the contract amendment, while others have yet to reach agreement.

The amendment of contracts covers six key points, namely, the size of the mining area, mandatory divestment, government revenues, continuation of operations, local content and the construction of smelters.

On Wednesday, one Contract of Work (CoW) holder and 18 holders of Work Agreement on Coal Mining Exploitation (PKP2B) generation signed the contract amendment, as witnessed by the Minister of Energy and Mineral Resources Ignasius Jonan.

The negotiation of the contract amendments has been ongoing since 2010, and encompasses 31 CoWs and 68 PKP2B holders. The latest signing signifies that 31 CoWs and 68 PKP2B have signed contract amendments.

‘The latest contract amendments will generate additional revenues for the government, amounting to US$27 million, or around Rp300 billion per year,’ Minister Jonan said.

Last year, royalties from the mining sector reached Rp40 trillion. It is projected that the amendment will yield an additional 1 per cent of additional revenues per annum for the government.

Followings are the companies that signed contract amendments on Wednesday:

  1. PT Indo Muro Kencana (CoW Generation III)
  2. PT Adaro Indonesia (PKP2B Generation I)
  3. PT Kendilo Coal Indonesia (PKP2B Generation I)
  4. PT Batubara Duaribu Abadi (PKP2B Generation III)
  5. PT Firman Ketaun Perkasa (PKP2B Generation III)
  6. PT Insani Baraperkasa (PKP2B Generation III)
  7. PT Interex Sacra Raya (PKP2B Generation III)
  8. PT Lanna Harita Indonesia (PKP2B Generation i III)
  9. PT Mantimin Coal Mining (PKP2B Generation III)
  10. PT Multi Tambang Jaya Utama (PKP2B Generation i III)
  11. PT Pendopo Energi Batubara (PKP2B Generation III)
  12. PT Perkasa Inakakerta(PKP2B Generation III)
  13. PT Santan Batubara (PKP2B Generation III)
  14. PT Sarwa Sembada Karya Bumi (PKP2B Generation III)
  15. PT Singlurus Pratama (PKP2B Generation III)
  16. PT Tambang Damai (PKP2B Generation III)
  17. PT Teguh Sinar Abadi (PKP2B Generation III)
  18. PT Wahana Baratama Mining (PKP2B Generation III)
  19. PT Kalimantan Energi Lestari (PKP2B Generation III)

Written by Staff Writer, edited by Roffie Kurniawan, email : roffien@theinsiderstories.com

 

 

 

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