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
