Gov’t Signs Contract Amendments for 13 Coal Miners

The Corruption Eradication Commission (KPK) plans to question Energy and Mineral Resources Minister Ignasius Jonan as a witness in a bribery case involving the Ministry of Transportation. (Antara Photo)

By : Telly Nathalia | on 10:31 AM November 16, 2017
Category : News, Economy

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.

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.

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