COAL - JOGMEC

INDONESIAN COAL MINING POLICY :
REGULATION AND LIMITING INDONESIAN PRODUCTION
Bambang Tjahjono Setiabudi
JOGMEC Coal Investment Promotion Seminar
Tokyo, 12 November 2014
DIRECTORATE GENERAL OF MINERAL AND COAL
MINISTRY OF ENERGY AND MINERAL RESOURCES
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.
The Role of Coal Mining Business
CSR
PRO POOR
HUMAN RESOURCES
LOCAL CONTENT
PRO GROWTH
Coal resources for
the people
wealth
PRO JOB
STATE REVENUE
INVESTMENT
ADDED-VALUE
TRADE BALANCE
(PRODUCTION, EXPORT
AND DOMESTIC)
PRO
ENVIRONMENT
GOOD MINING PRACTICE
REKLAMATION AND POST
MINING
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
 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”
4
REGULATION FOR DMO
 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.
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
120,53
93,40
31,36
18,71
•Coal resources and reserves increase 5% dan 11% , respectively per year
Coal Mining Business
Coal Contract of Work (PKP2B)
Generati
on
Year
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
141
66
75
4
7
10
54
Total
Total Terminati Active Explorati
on
on
FS
Constructi Producti
on
on
STAGE
STATUS
TOTAL
EXPLORATION
PRODUCTION
C&C
1.444
995
2439
NON C&C
1.032
400
1432
TOTAL
2.476
1395
3871
INDONESIA’S MINERAL AND COAL INVESTMENT
(Million US$)
5.793,4
4.373,6
4.463,4
4.801,2
5.126,2
2.949,0
9
PRODUCTION, EXPORT AND DMO
235
75
DMO:START IN 2010
 Coal production increases 14% per year.
 Domestic consumption should be priority, consuming 20%-25% of the total
production with 4% growth per year.
ENERGY AND MINERAL RESOURCES REVENUE
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
450
Target and Realization of EMR Sector Income
400
350
Triliun Rupiah
300
250
200
150
100
50
Others
Geothermal
Mining
Oil and Gas
Contribution of mining to state income
increase almost 3 times at the last 5 years.
0
Rencana
plan
2009
233,6
2010
289,3
2011
273,8
2012*
404,7
Realisasi
Realization
238,0
285,6
388,0
427,8
2013**
403,7
446,92
The realization always above target
TOP TEN INDONESIAN COAL EXPORT DESTINATION *)
*) only from CCow and PTBA
KOREA, REPUBLIC OF
EXPORT (TON)
SUPPLIER
(only from Ccow)
2008
2009
2010
2011
2012
2013
14.594.794
18.361.913
20.684.215
18.899.507
16.541.992
18.560.198
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.
Total
107.642.618
COAL PRODUCTION PLAN (2015 – 2019)
NO
INDIKATOR KINERJA
5. Pemenuhan Batubara Domestik
a. DMO Batubara
b. Ekspor Batubara
c. Produksi Batubara
SATUAN
2015
2016
2017
2018
Juta Ton
103
111
120
130
Persentase
Juta Ton
Persentase
Juta Ton
24%
322
76%
425
26%
318
74%
429
28%
313
72%
434
30%
308
70%
438
2019
KETERANGAN
140 Berdasarkan kebutuhan pengguna
32% dalam negeri, naik 8%/tahun
302
Ekspor turun 1,5% per tahun
68%
442 Dikendalikan naik 1% per tahun
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.
GOVERNMENT POLICY
To implement priority fulfillment of coal domestic needs
To provide certainty and transparency in the
2
activities of mining (Mining Law supporting
regulations, sanctions violations, etc.)
3 To implement supervision and guidance
1
POLICY
DIRECTION
5
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)
4
6
To maintain environmental sustainability through
environmental management and monitoring
(including reclamation and post-mining)
COAL FOR DOMESTIC NEEDS
Decree of the MEMR DMO
• Domestic market is only 20 – 25 % of Total NationalSources:
Production
Determination
• 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%.
LEGAL CERTAINTY AND TRANSPARENCY
∗ 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
IMPLEMENT SUPERVISION AND GUIDANCE
MINERBA ONE MAP INDONESIA (MOMI)
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
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
ENCOURAGE THE INCREASE OF STATE REVENUE




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
COAL PRICE POLICY
UU NO. 4/2009
Pasal 6 Ayat 1 K
PerMen 10/2014
(4 April 2014)
PP NO. 23/2010 (1 Feb 2010)
Pasal 85
Kepdirjen 479/2014 (30 Mei 2014)
diperbarui Surat Dirjen 1619/2014 (22
Sept 2014)
Pasal 11 Ayat 4
PerDirjen No. 515/2011
ttg Formula Harga
Batubara
(24 Maret 2011)
KepDirJen
ttg Harga Batubara
Bulanan
HBA
Catatan :
Untuk PKP2B diatur dalam Kontrak
PKP2B Pasal 12 / 13
PerMen No. 17/2010 (23 Sept 2010)
Pasal 21 Ayat 4
KepMen No.
0617/2011
ttg Harga
Batubara
ke PLN
(3 Maret
2011)
PerDirjen
1348/2011
ttg Harga
Batubara untuk
Pembangkit
Listrik Mulut
Tambang
(9 Des 2011)
HPB Marker &
lainnya
HPB
Coking Coal
Hard Coking
Semi Soft Coking
Pasal 13 Ayat 4
PerDirJen No.
644/2013
sebagai
perubahan
999.K/2011
ttg Biaya
Penyesuaian
(21 Maret
2013)
Pulverised Coal Injection
Pasal 21 Ayat 4
Pasal 12 Ayat 5
PerDirJen
480/2014
ttg Batubara
Jenis &
Keperluan
Tertentu
(30 Mei 2014)
Kepdirjen 479/2014
KepDirJen
481/2014
ttg Surveyor
Batubara
(30 Mei 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
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.
INCREASING NON-TAX STATE REVENUE (PNBP)
 Royalty tariff will be increased for Mining Business Permits.
 Royalty payment before shipment.
 Coal Exporter Certificate (ET)
IMPROVEMENT OF ADDED VALUE
DIRECT USE
Power Plant
Industry
Liquefaction
COAL
CONVERSION
Gasification
Cokes
Active Carbon
LOW RANK COAL
UPGRADING
High Rank Coal
Clean Coal Technology
Liquid
Gas
CWM
Chemical Feedstock
PRIORITY OF COAL FOR DOMESTIC NEEDS
Condition 2007-2009
Condition 2010-2013
• DMO should be applied
• Target UKP4 of 2009 to issue GR of DMO
- 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
• 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
• GR NO 34 /2009 about mineral
and coal for domestic need
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)
DEDICATED PORTS FOR COAL EXPORT (PROPOSED LOCATIONS)
Aceh
Aceh Selatan.
West Sumatera
Padang
Riau
Riau Bay
1.
2.
3.
4.
East Kalimantan
Balikpapan bay
Adang Bay
Berau Bay
Maloy Bay
Jambi
Jambi Bay
Bengkulu
Bengkulu Port
South Kalimantan
Sumsel
Tanjung Api Api
Lampung
∗
∗
∗
∗
∗
Tarahan
1. Tobaneo/Pulau laut,
2. Sungai Danau,
3. Batu Licin
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.
DEREGULATION
Jenis Perizinan
No
Izin
Instansi
Persetujuan
Rekomendasi/
Sertifikasi
Mandator
y
Optional
Mandatory
Optional
Mandatory
Optional
Jumlah Perizinan
Tiap Instansi
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
10
101
No
Izin
Instansi
Jenis Perizinan
23
5
Persetujuan
Rekomendasi/
Sertifikasi
Mandator
y
Optional
Mandatory
Optional
Mandatory
Optional
Jumlah Perizinan
Tiap Instansi
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
Kewenangan KESDM
Kewenangan KESDM + Kementerian Lain
EXISTING
Kementerian Lain/PEMDA
USULAN
www.minerba.esdm.go.id