(Petromindo, Dec 2020) MAGAZINE - Coal Asia Vol 121 - Dec 29 2020 To Jan 29 2021 (7,14 MB)

TRIPUTRA ENERGI MEGATARA:
EMERGING ENERGY SOLUTION
A BETTER 2021
Gunardi Atmojo, CEO of Triputra Energi Megatara
COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 99
100 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021
contents
10
OPINION | Singgih Widagdo
2021 priority, coal
production control
14 OPINION | Bill Sullivan The government (the Energy
New approach to construction and Mineral Resources or
failure liability – Important implications
ESDM authority) has decided
for heavy industry
on Indonesian coal production
22 COAL NEWS for the year 2021 of 550
million tons. Out of the year’s
38 MINERAL NEWS planned production, a large
amount or 351.44 million
52 OPINION | Hendra Sinadia tons would be allocated to
Review 2020 and outlook 2021 companies supervised by the
central government.

68
contents
54 OPINION | UMBRA Triputra
FOCUS
Battery electric vehicle (BEV) development Energi Megatara:

to welcome electricity-based vehicle era in Emerging
indonesia
Energy Solution
59 COMPANIES Addressing the Covid-19
IEA: A rebound in global coal demand in 2021 pandemic that hit businesses
is set to be short-lived, but no immediate around the globe, industries
decline in sight have been searching measures
60 Triputra Energi Megatara: to operate optimally amidst
Your reliable partner the unprecedented time. In
62 IEEFA: Coking coal’s decline likely to follow mining operations, where fuel
the path of thermal coal’s progressive demise corresponds the large share
64 Moody’s upgrades Geo Energy to Caa1; of operational costs, miners
outlook stable ultimately require reliable
services with competitive
66 ANALYSIS | SSEK Legal Consultants pricing fuels.
Indonesia’s Omnibus Law puts focus on direct
use of geothermal resources

72 MAIN STORY
A BETTER 2021
After unprecedented market disruption due to Covid-19
pandemic during the year, industry players expect better
condition in 2021 supported by improving coal prices in recent
weeks. However, many industry players believe that coal
market may not recover to the 2019 level anytime soon.
76 ANALYSIS | Ian Wollff

It’s raining men – Gender in the Indonesian mining sector
82 Indonesian Coal Report

Highlight illegal coal, illegally legal
96 Shares performance
contents
We welcome opinions articles from experts, executives on coal industry. The article, either in Indonesian
or English, should be sent to [email protected] and has between 1,000 and 1,500 words.
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[PUBLISHER’S LETTER]
PATRONS
Singgih Widagdo
PUBLISHER
Coal Review and Outlook
Alexander Ginting The global outbreak of Coronavirus Disease has changed the world’s coal
([email protected])
demand and supply trend during 2020, including Indonesia – the world’s largest
EDITORIAL DIRECTORS
Reiner Simanjuntak thermal coal exporter. The government estimated Indonesia’s coal export this year
([email protected])
may be at least 392.4 million tons, a 14 percent lower than coal export realization in
Johannes Simbolon
([email protected])
2019 at 454.5 million tons.
EDITOR IN CHIEF The government, however, expects higher coal export potential next year on
Adianto P. Simamora strong demand in key market of China and also in new markets in the region such as
([email protected])
SENIOR EDITOR Vietnam, Bangladesh and Pakistan. The Ministry of Energy and Mineral Resources
Tri Subhki Rakhmatullah projected the country’s coal export volume next year to be in the range of 406.3
([email protected])
million-427 million tons with coal export to the China market is estimated to range
EDITOR
Thomas Robiana Sembiring from 185 million tons to 202.3 million tons in 2021.
([email protected])
The government has set coal production target of 550 million tons for next year,
ART DIRECTOR
Ipunk AF. or the same as this year’s target in a bid to help revive the price of the commodity.
PHOTOGRAPHERS All coal miners in the country must adjust their 2021 production plans to the
Khalsa Alkalis Leatemia
government’s output target. As of November, the country’s coal production reached
Abdul Rahim
Mudasir 504.62 million tons, or about 91.75 percent of the government’s full-year target of
Lucky Ebenhaezer (Research) 550 million tons.
GRAPHIC DESIGNER
M. Yunus The International Energy Agency (IEA) forecasts a 2.6 percent rise in global
ADVERTISING MANAGER coal demand in 2021, driven by higher electricity demand and industrial output.
Nizma Sari Nurulita China, India and Southeast Asian economies account for most of the growth,
([email protected])
ADVERTISING SUPPORT although the United States and Europe may also both see their first increases in coal
Defi Margareth Sitorus consumption in nearly a decade. The IEA, however, said that global coal demand
Irmawati
EDITORIAL SECRETARY
in 2021 is still forecast to remain below 2019 levels and could be even lower if the
Romeldo Sembiring report’s assumptions for the economic recovery, electricity demand or natural gas
[email protected] prices are not met.
PROOF READER
Tyasno Hery The rebound in coal demand in 2021 is set to be short-lived, with coal use
DISTRIBUTION MANAGER forecast to flatten out by 2025 at around 7.4 billion tons. IEA stated that the future of
Tria Purnama Sari
coal will largely be decided in Asia. Today, China and India account for 65 percent
CIRCULATION
Riyanci Dina of global coal demand. With Japan, Korea, Taiwan and Southeast Asia included, that
share rises to 75 percent. China, which currently accounts for half of the world’s coal
CoalAsia is part of consumption, will be especially influential.
CoalAsia runs the coal review and outlook as the main story for December
EDITORIAL, ADVERTISING & CIRCULATION edition. We also publish analysis and opinion articles by noted experts in mining
Jl. Puskesmas No. 9A industry to enrich knowledge of the country’s mining industry.
Kelapa Gading Timur - Jakarta Utara
Jakarta 14240 - Indonesia
Phone: +62-21-22458787 Happy New Year
Advertising inquires contact
[email protected]
Adianto P. Simamora
Subscription inquires contact
[email protected] Editor in Chief

OPINION
By Singgih Widagdo - Indonesian Coal Observer
2021 priority, coal production control

T
he government (the Energy government and the amount proposed for each company. In the formula, the
and Mineral Resources by the companies for their planned amount of production allocated to a
or ESDM authority) has production for the year 2021. company is based on the said company’s
decided on Indonesian coal There is only a slight change of production achievement in 2020.
production for the year 2021 of 550 the planned production of 2021 from Observing the condition of the coal
million tons. Out of the year’s planned that of the previous year. Companies market, especially in concern with the
production, a large amount or 351.44 holding the Coal Contract of Works pressures on the coal price, it is just
million tons would be allocated to (PKP2B) would be entitled to the rights that the ESDM authority set the
companies supervised by the central largest allocation amounting to 292.66 planned production at 550 million tons.
government. The remaining 198.56 million tons. State-owned companies However, there is still some room for the
million tons (36 percent) would be holding the Mining Business License companies to propose revisions. As the
allocated to companies under the in Production Operation (IUP OP) government would continue to evaluate
supervision of the local governments. would provide 24.20 million tons, while the plan as it goes throughout 2021,
Out of the entire amount, 429.29 million foreign companies holding the IUP OP particularly in terms of the coal demand
tons was proposed by companies under licenses would be entitled to provide and price, these companies would be
the supervision of the ESDM authority. 32.48 million tons of the planned given some room to propose revisions in
There is the 77.9 tons difference production. The ESDM Ministry is the middle of the year. The authorities
between the amount decided by the quite objective in allocating production would consider the proposed revisions

by taking into account the company’s The market and production control with 5,000 kcal/kg (gar) quality managed
performance and the external condition Whether or not there is any to reach up to US$ 62, while it was
of the coal market. direct impact on the release of the only at US$ 41 level in the middle of
Planning the adequate amount of government’s decision on the coal November. In mid-December, the coal
coal production based on the situation production plan 2021, the fact is, the with quality of 4,200 kcal/kg (gar) has
of the domestic, as well as international coal price improved by approximately actually reached a new trade record with
coal business is a government measure 19 percent throughout December a highest increase of transaction volume.
that should be appreciated. But 2020. In the last quarter of the year, However, we have to pay close
approving all company proposals in the price even jumped 35 percent. And attention to the fact that fast increases of
the actual development of the coal approaching the end of the year 2020, the price are not caused by fundamental
mining industry would only entrap the the price was 21 percent higher than that conditions. Various happenings leading
government in the continuing pressures in the early months of 2020. to increases of the coal price, which
against the coal price. Therefore, The relatively fast improving benefit Indonesia’s coal mining industry,
various measures based on conditions economy in China has ultimately caused as the large portion of the country’s coal
of the international coal market, the the hike of the coal price. This is actually production is allocated for exports. The
national policies on energy, and the the fortunate moment for Indonesia, as its damages in Newcastle port that require
state finance should be integrated. The majority of coal exports are for China’s major repair up to January or February
ESDM Ministry should now start the market. China’s Gross Domestic Product 2021 that have significantly cut down
preparation and hard work to build the (GDP) has moved fast. In February this the supply capacity of Australia, the
grounds on how the coal production year, it went down to -6.8 percent, which ongoing import ban of China against
control should be implemented in the was on the lowest level since 1989. Australia, the winter, also the mining
coming years. In September, it managed to climb up accident happened in China are among
to -4.9 percent. The increase was just the events pushing the coal price up in a
normal, as China managed to return its fast pace.
manufacture’s Purchasing Managers’ Such events have opened the chances
Index (PMI) from 40.30 percent (in for Indonesia to increase its coal exports,
February 2020) to 50 percent (growth) especially to China. APBI (Indonesian
since May 2020. The government has Association of Coal Business Owners)
made all possible efforts to improve has been appreciated for its effort to
China’s economy affecting the demands ensure that China absorbs the Indonesian
of commodities, including opening coal supply by recently signing a
potential coal exports from Indonesia. Memorandum of Understanding (MOU)
Considering over 50 percent of with the country’s coal industry’s
potential markets of Indonesian coal authority of China Coal Transportation
are the exports to China and India, the and Distribution (CCTDA) (25/11).
government should develop the plan on The duration of the MOU is three years,
the national coal production for 2021 and it is worth US$ 1.46 billion or
and the next years primarily based on approximately Rp 20.6 trillion. After the
the condition of the coal market. signing of the MOU, sale-and-purchase
At the moment, the coal price contracts are expected to follow suit
increases quite fast. The price of coal for the 2021 shipments. The exports to
with 4,200 kcal/kg (gar) quality is China have made the biggest portion of
now US$ 41. It was only US$ 28 last Indonesia’s coal exports (30 percent),
CA | Boim
November. Similarly, the price of coal and they were expected to reach 118

OPINION
million tons by the end of 2020, which against the price (coal with certain concerning the depressed market in the last
means we have an 18 percent decrease qualities are even priced below the couple of years and the consequences of
compared to that of 2019. With the mining cost), have led to severe such condition, then in implementing the
signing of the MOU, the exports of consequences of suspension of mining required control, the government should
Indonesian coal to China are expected to operation and closing of the mines. The not just focus on the yearly production.
reach 150 million tons by 2021. mines’ closure is not based on the mining There should be efforts to speed up the
Observing Indonesia’s potential plan, already proposed to and approved revisions on the limits of national coal
export markets outside China and India, by the Energy and Mineral Resources production set forth in the General Plan of
we should turn our attention to some (ESDM) authority. This condition National Energy (RUEN). The National
countries in Southeast Asia, expected to could lead to environmental problems Energy Council (DEN) presided by the
increase their imports of Indonesian coal. damaging the image of the mining president and chaired by the ESDM
Though we have seen the prospects in industry that has been painstakingly Minister who run the daily operation
these countries, their absolute growth of built thus far. Exploration activities and should easily facilitate the revisions over
coal demand is still below the potential investment would not run well under limits of the national production set forth
growth of production for the year 2021 pressures against the price and declining in RUEN of 400 million tons in 2019 (in
and the years going forward, which is volume of potential exports. effect under PERPRES No. 22 of 2017),
projected to reach 600 million tons. Mapping projections of the mining as the number is no longer rational for the
The coal imports of these four industry should not be done to last only coal mining industry already established
Southeast Asian countries namely; several years, as the government has the thus far.
Vietnam, Malaysia, Thailand, and the policy of continuing the development With RUEN revisions, the ESDM
Philippines combined are projected to of coal as energy. A long-term vision is Ministry no longer needs to establish
grow only 6 million tons in 2021, to required in managing the coal mining the national production planning and the
reach some 89 million tons. Observing industry within that framework. As coal Work Plan and Budget (RKAB) of coal
this condition of growth of the potential is also utilized for electricity fuel by mining companies, effective for only
importer countries, China and India are some of the coal importers, the policies one year. The RKAB should last for,
definitely the most hopefuls in absorbing related to coal mining industry should at least, five years, or even 10 years, if
the largest amount of Indonesian coal. accommodate, not only the calculation necessary, while the monitoring of the
China would potentially import some of energy mix for the domestic use, but mines’ environments should be reviewed
150 million tons throughout 2021, also that of the importer countries. every year. Though such actions are
while India is expected to follow suit by Besides that, environmental issues and considered difficult and complicated
absorbing 105 million tons of Indonesian ratified commitment on environmental by certain parties, but in observance
coal in 2021, an increase from 98 million reservation already agreed by many coal of the possible negative impacts, the
tons of coal imports in 2020. importer countries should be calculated in government should seriously work
details so that the Indonesian government with other stakeholders to establish the
Production control steps would not be trapped in inadequate RKAB in effect for over a year.
The coal prices have been depressed projections of national production Finally, we have to acknowledge
during the last two years. The prices set forth every year. Setting wrong the fact that in implementing control
of coal with 5,000 kcal/kg (gar) and projection would lead to, not only losses over the national coal production, the
4,200 kcal/kg (gar) qualities, mostly of income on the part of the government government should establish the long-
produced in Indonesia, stayed at US$ and damages to the environment, but it term vision on how the domestic coal
41 and US$ 28 levels, respectively, in would also put the companies in a bad potentials are optimized to accommodate
mid-November 2020. The long-term and position as they have to operate under the interests of the government and
hard pressures against the coal prices the production capacities. Operating the investors, for the highest welfare of the
have lowered the non-tax state-income mines not in line with the mining plan people. The measures should also take
(PNBP), and strategically affect the would affect the mining efficiency leading into account details over conditions of
conservation of the listed reserves. to financial losses. the importers countries in response to
For the companies, the pressures Learning from the experience policies on the effective energy mix

OPINION
By Bill Sullivan
Christian Teo & Partners (in asscociation with Stephenson Harwood LLP)
New approach to construction

failure liability – Important
implications for heavy industry 1234
Introduction mining and oil & gas companies. As damage to another person obliges
A 2020 construction services such, all companies operating in these the person causing the damage to
regulation has given “new life” to industries should be taking careful note compensate for the damage.
Indonesia’s long existing but largely of Indonesia’s revamped approach to Everyone is responsible not only for
overlooked potential liability for liability for defective construction of the damage caused by his deed but also
defective construction of buildings and buildings and other facilities. for the damage caused by his negligence
other facilities. In this article, the writer will first or carelessness.
It may well be that the Government’s review the relevant provisions of the A person is responsible not only
focus on infrastructure development 2020 construction services regulation for the damage caused by his own deed
and its expectation that numerous new and then look at how it encourages but also for damage caused by persons
infrastructure projects will be “ rolled much greater reliance upon insurance under his responsibility or by property
out” in the next few years has resulted to mitigate against the consequences of under his supervision.”
in concern that Indonesia has not defective construction of buildings and ICC Articles 1365, 1366 and 1367
previously done enough to protect users other facilities. are understood as creating the potential
of buildings and other facilities from the for general “tort liability” although this
consequences of defective construction. Background concept is not nearly as well-developed
This regulation is particularly The colonial era Indonesian Civil in Indonesia (being a civil law country)
interesting because of the overt Code (“ICC”) has long made provision as it is in common law counties such as
encouragement it provides to in respect of (i) general liability for Australia, North America, Singapore or
construction services providers and damages or losses to others occasioned the United Kingdom.
building/facility owners to co-operate by wrongdoing and (ii) more specific In principle, ICC Articles 1365,
in obtaining insurance coverage against liability for damages or losses arising 1366 and 1337 might well be applicable
building/facility failure. The likely out of the construction or use of to construction services providers and
“windfall” opportunity being created for defective buildings. building owners which are negligent
insurance companies is obvious. With respect to general liability for in connection with the construction or
Poor quality construction services damages or losses to others occasioned maintenance/operation of buildings and
and resulting defective building/ by wrongdoing, ICC Articles 1365, 1366 other facilities. Much remains unclear,
facility integrity can have very serious and 1337 provide that: however, about the actual scope of ICC
implications for energy, infrastructure, “Every unlawful action that causes Articles 1365, 1366 and 1337. Because
1. Bill Sullivan, Senior Foreign Counsel with Christian Teo & Partners and Senior Adviser to Stephenson Harwood LLP.
2. Bill Sullivan is the author of “Mining Law & Regulatory Practice in Indonesia – A Primary Reference Source” (Wiley, New York & Singapore 2013), the first internationally
published, comprehensive book on Indonesia’s 2009 Mining Law and its implementing regulations.
3. Copyright in this article belongs to Bill Sullivan and Petromindo.
4. This article may not be reproduced for commercial purposes without the prior written consent of both Bill Sullivan and Petromindo.

CA | Boim
of this lack of clarity, ICC Articles 1365, clear basis for the liability of building 1369 and 1609, such as “building”,
1366 and 1337 are usually only relied owners if their negligence leads to the “negligence in maintenance”, “defect in
upon as a matter of last resort and when collapse of a building/facility resulting construction or array”, “contracted and
there is no other more certain basis for in damage or loss to third parties. built at a certain price”, “decay”, “during
liability available. Likewise, it might be thought that 10 years”, “unsuitability of the soil”
More specific potential liability ICC Article 1609 would be sufficient etc., (iii) the absence of clear minimum
for damages or losses arising out of to create a clear basis for the liability standards for building construction and
the construction or use of defective of architects and contractors (i.e., maintenance, (iv) the relatively non-
buildings is provided for in ICC Articles “construction services providers”) if litigious nature of Indonesian society
1369 and 1609. their negligence leads to the collapse of and (v) the cost and uncertainty of
ICC Article 1369 provides that: a building/facility resulting in damage or Indonesian legal proceedings. With
“The owner of a building is loss to third parties. This, however, has regard to this last factor, it would be
responsible for any damage caused not proved to be the case and research simply beyond the knowledge and
by its collapse, entirely or partially, has revealed very few, if any, cases financial capacity of most construction
if this happens due to negligence in in which ICC Articles 1369 and 1609 workers and individual building users,
maintenance or because of a defect in its have been successfully relied upon to who suffer damage or loss in connection
construction or array.” establish the liability of building owners with a building failure, to even think
ICC Article 1609 provides that: and/or construction services providers of, far less seriously proceed with,
“If a building, contracted and built at for damage or loss suffered by third instituting legal proceedings against
a certain price, decays wholly or partly parties in connection with the use of the owner of or construction services
through a defect in the construction buildings/facilities. That seemingly provider in respect of a “failed”
thereof, or even because of the surprising reality is probably due to building/facility.
unsuitability of the soil, the architects a combination of (i) the lack of much In the energy, infrastructure, mining
and contractors shall therefore be meaningful development of the concept and oil & gas industries, there has long
responsible during ten years.” of tort liability as a whole in Indonesia, been speculation as to whether or not such
It might be thought that ICC Article (ii) the uncertain meaning and scope things as (i) power plants, (ii) bridges,
1369 would be sufficient to create a of key terms/words, used in Articles railways and toll roads, (iii) mineral

OPINION
processing & refining facilities and tailings Services; after final Building handover if the
dams and (iv) pipelines and storage tanks (b) “Building Failure”, being the contract specified minimum useful
qualified as “buildings” for the purpose of collapse or malfunctioning of a life of the relevant Building is at
ICC Articles 1369 and 1609. building after the final handover of least ten years or otherwise for the
Government Regulation (“GR”) the Construction Service result; contract specified minimum useful
No. 22 of 2020 re Implementation of (c) “Construction Services”, being life of the relevant Building if the
Law No. 2 of 2017 re Construction construction consultancy services contract specified minimum useful
Services (“GR 22/2020”) was issued and construction work whether life of the relevant Building is less
in April 2020 and revokes a number of performed separately or in than ten years (Articles 85(1), 86(1)
previous regulations including (i) GR combination (i.e., “Integrated and 86(2) of GR 22/2020).
No. 28 of 2000 re Business and Role Construction Work”);
of Construction Services Community (d) “Expert Assessors”, being 2.2 Liability of Service Users: Service
as most recently amended by GR No. individuals, groups or institutions Users are liable for Building
92 of 2010, (ii) GR No. 29 of 2000 re given the authority to carry Failures:
Construction Services Implementation out assessments and make (a) resulting from Service User non-
as most recently amended by GR No. determinations of the cause of fulfilment of relevant Security,
54 of 2016 and (iii) GR No. 30 of 2000 Building Failure; Safety, Health and Sustainability
re Supervision of Construction Services (e) “Security, Safety Health and Standards; and
Implementation. Sustainability Standards”, being (b) occurring after the end of the
GR 22/2020 does not, however, the required levels or standards contract specified minimum useful
revoke ICC Articles 1369 and 1609. of security, safety, health of life of the relevant Building which,
Instead, GR 22/2020 creates a parallel construction worksites and social in the case of a Building with a
and much more certain route for security for workers as well as contract specified minimum useful
recovery in respect of “failed” buildings/ local environmental management life of not less than 10 years, means
facilities. and environmental management during the eleventh and subsequent
technical guidelines in the years after final Building handover
Analysis and discussion implementation of Construction (Articles 85(1) and 86(3) of GR
1. Overview of GR 22/2020 Services; 22/2020).
The apparent intention of GR (f) “Service Providers”, being
22/2020 is to (i) rectify the inherent contractors and sub-contractors 2.3 Determination of Cause of Building
weaknesses of ICC Articles 1365, performing Construction Services; Failure: The cause of a Building
1366, 1367, 1369 and 1609 when it and Failure and the potential liability
comes to creating a certain basis of (g) “Service Users”, being owners and of a particular Service Provider
potential liability for damage or loss in other parties (called “work givers”) or Service User for that Building
connection with the design, construction, which “use” Construction Services Failure is to be determined
maintenance and operation of buildings/ (Article 1 of GR 22/2020). by an Expert Assessor whose
facilities in Indonesia and (ii) greatly determination is final and binding on
reduce, if not eliminate altogether, the 2. Key Provisions of GR 22/2020 all relevant parties (Article 85(2) and
need for court proceedings in order to 2.1 Liability of Service Providers: (4) of GR 22/2020).
recover for damage or loss suffered in Service Providers are liable for 2.4 Nature of Liability for Building
connection with building/facility failure. Building Failures: Failure: Where Service Providers
The implementation of GR 22/2020 (a) resulting from Service Provider and/or Service Users are liable for
turns on a number of key concepts non-fulfilment of relevant Security, Building Failure, this liability may
including: Safety, Health and Sustainability be in the form of:
(a) “Buildings”, being the physical Standards; and (a) an obligation to “replace” (i.e.,
form of the result of Construction (b) occurring during the first ten years rebuild) or repair the relevant

CA | Boim
Building by the relevant Service Provider/Service User non- (a) to be shared between the Service
Provider; and/or compliance with relevant Security, Provider and the Service User; and
(b) an obligation to pay damages by Safety, Health and Sustainability (b) the Service Provider’s share of
the relevant Service Provider or the Standards are (i) compensation the insurance premium is to be a
relevant Service User (Article 85(5) for loss of life, (ii) compensation component of the Construction
of GR 22/2020). for personal injury resulting Service fee it is entitled to from the
in permanent disability, (iii) Service User (Article 90(6)(b) of GR
2.5 Determination of Amount compensation for medical treatment 22/2020).
of Damages: Following the in respect of personal injury and
determination of an Expert Assessor (iv) compensation for destruction, 2.8 Sanctions for Non-Compliance
that a particular Service Provider damage or loss (Article 90(3) of GR with Security, Safety, Health
or Service User is liable for a 22/2020). and Sustainability Standards:
particular Building Failure, the 2.7 Insurance: Service Providers and Service Providers and Service
amount of damages payable by Service Users may obtain insurance Users which do not comply with
the particular Service Provider or coverage, in the form of professional relevant Security, Safety, Health
Service User is to be determined indemnity insurance and building and Sustainability Standards face
by so-called “Authorized Parties” insurance, for liability for Building sanctions in the form of:
including asset appraisers, public Failure, thereby effectively (a) written warnings;
accountants, the Audit Board of transferring to the relevant insurance (b) administrative fines of 5% of
Indonesia, independent auditors, law company responsibility for the the value of the work that is not
enforcement authorities and other financial consequences of liability in compliance with the relevant
“Ministries/Bodies” (Article 85(3) of for Building Failure (Article 90(5) of Security, Safety, Health and
GR 22/2020). GR 22/2020). Sustainability Standards;
2.6 Damages for Building Failure: (c) suspension of Construction Service
Relevant damages for Building The premium for any insurance activities;
Failure resulting from Service coverage against Building Failure is: (d) inclusion on a “blacklist”;

OPINION
(e) suspension of business license; and

(f) revocation of business license
(Article 63 of GR 22/2020).
3. Assessment of GR 22/2020
3.1 Elimination of Much Uncertainty:
GR 22/2020 goes a long way in
terms of eliminating much of the
uncertainty that surrounds the
intended scope of ICC Articles 1369
and 1609.
The definition of “Buildings” is

sufficiently broad to make clear that it is
not confined to office buildings and/or
residential buildings but, rather, includes
any physical form that results from
Construction Services. This, logically,
CA | Boim
includes energy, infrastructure, mining

and oil & gas facilities such as (i)
power plants, (ii) bridges, railways circumstances in which liability for arises. In other words, GR 22/2020
and toll roads, (iii) mineral processing Building Failure arises. Although does not impose a regime of so-called
& refining facilities and tailings dams the Security, Safety, Health and “strict liability” for Building Failure.
and (iv) pipelines and storage tanks. Sustainability Standards are still, In this regard, GR 20/2020 does not
Energy, infrastructure, mining and oil themselves something of a “work in differ in any material respect from ICC
& gas companies are major users of progress”, Minister of Public Works Articles 1369 and 1609 which, however,
Construction Services and, as such, are & Housing Regulation No. 21 of are much less clear as to what is the
now in a much stronger position than 2019 re Guidelines for Construction relevant fault or wrongdoing that must
they were previously to recover for Safety Management Systems be established in respect of architects,
Building Failure resulting from Service sets out in considerable detail contractors and building owners before
Provider non-compliance with Security, what Security, Safety, Health and they can be held liable for building
Safety, Health and Sustainability Sustainability Standards (otherwise “collapse” or “decay”.
Standards. known as “SKK”) comprise and GR 22/2020 also continues to use
how they are to be determined. the fairly arbitrary time period of a
3.2 Likewise, (i) requiring Service maximum of 10 years for the liability
Providers and Service Users to Continued Focus on Fault Based of Service Providers for Building
comply with relevant Security, “Decennial” Liability: It is important to Failure. So-called “decennial” liability
Safety, Health and Sustainability understand that GR 22/2020 continues is a feature of ICC Articles 1369
Standards and (ii) making clear to require the establishment of “fault” or and 1609. At best, 10 years is a very
that Building Failure, attributable “wrongdoing”, in the sense of Service “rough and ready guestimate” of
to non-compliance with relevant Provider/Service User non-compliance how long it is appropriate to hold a
Security, Safety, Health and with relevant Security, Safety, Health Service Provider liable for, after final
Sustainability Standards, will result and Sustainability Standards being the handover of the relevant Building
in liability for the non-compliant cause of the relevant Building Failure, to the Service User, and where any
Service Providers and Service before any Service Provider/Service Building Failure is the result of the
Users, makes much more certain the User liability for that Building Failure Service Provider’s non-compliance

with relevant Security, Safety, are charged with responsibility for potential for interference in Indonesian
Health and Sustainability Standards. determining the cause of Building court proceedings as well as the
“Decennial” liability is, however, Failure and their determinations ability of well-resourced defendants
an approach that is used in various are final and binding while (ii) in Indonesian court proceedings to
jurisdictions apart from Indonesia. Authorized Parties are charged pursue multiple levels of appeal if they
It is not unreasonable to question with responsibility for determining lose in the first instance and thereby
why it should matter, in terms of the amount of damages payable postpone the successful plaintiff’s
liability, how long after final handover in respect of Building Failure recovery almost indefinitely. Somewhat
Building Failure occurs if it can be resulting from non-compliance with curiously, however, the determinations
established that the Building Failure relevant Security, Safety, Health and of Authorized Parties are not expressed
is the result of the relevant Service Sustainability Standards. to be final and binding so litigation may
Provider’s non-compliance with still be possible in the case of damages
applicable Security, Safety, Health and The intention appears to be that determinations by Authorized Parties.
Sustainability Standards. A maximum liability for Building Failure and the It must be readily acknowledged,
of 10 years liability, for claims damages payable in respect of Building however, that Expert Assessors and
against Service Providers in respect of Failure, resulting from non-compliance Authorized Parties are also open to
Building Failure, is also inconsistent with relevant Security, Safety, Health being manipulated by unscrupulous
with the 30 year ICC limitation period and Sustainability Standards, will no and well-resourced parties.
on general claims. longer have to be determined by way Accordingly, taking the process of
of expensive, protracted and uncertain determining the cause of Building
3.3 Reliance on Expert Assessors and court proceedings as would be the Failure and assessing damages for
Authorized Parties: The role of case for anyone wanting to recover Building Failure away from the
Expert Assessors and Authorized for Building Failure in reliance upon Indonesian courts does not necessarily
Parties is of paramount importance ICC Articles 1369 and 1609. This can eliminate altogether the potential
in the implementation of GR only be a good thing given the widely problems of lack of transparency and
22/2020 given (i) Expert Assessors recognized lack of transparency and interference in the process.

OPINION
unfortunate that GR 22/2020 does not

3.4 Residual Uncertainty as to what make clear that the recoverable “loss”
is Meant by “Loss”: Despite the for Building Failure, caused by non-
many improvements made by compliance with relevant Security,
GR22/2020, it leaves unclear to Safety, Health and Sustainability
whether or not loss of revenue, loss Standards, includes all forms of economic
of profit and other forms of so-called loss as well as physical damage or loss.
“economic loss” can be recovered In the absence of recovery for economic
from Service Providers and Service loss being specifically dealt with in
Users in respect of Building Failure GR 22/2020, companies and their legal
caused by non-compliance with advisers will have to turn to general
relevant Security, Safety, Health principles of Indonesian law in order to
and Sustainability Standards. determine what types of economic loss,
In this regard, Article 90(3)(d) if any, are recoverable in the case of
of GR 22/2020 merely refers to tort-like situations. Unfortunately, the
compensation being recoverable general principles of Indonesian law are
for “destruction, damage or loss not particularly helpful in this regard.
resulting from Building Failure”. While foreseeable loss of profit may be
recoverable as a form of “interest” in the
While individuals and their case of breach of contract, the position is
families will, typically, be primarily less clear in the case of tort as this area of
concerned about recovery for death the law is substantially undeveloped
and personal injury resulting from in Indonesia.
Building Failure, companies are much
more likely to be concerned about the 3.5 Opportunities for Insurance
economic consequences for them of Companies: GR 22/2020 would
Building Failure. seem to offer particularly interesting
In the energy, infrastructure, mining opportunities for insurance
and oil & gas industries, Building companies. overtly encouraging Service Providers
Failure can have a major negative and Service Owners to obtain
impact on a company’s financial Much of the uncertainty that professional indemnity insurance and
performance where it is a facility, previously surrounded potential liability building insurance as an efficient means
important to operational continuity, for Building Failure, pursuant to ICC of effectively protecting themselves
that is the subject of Building Failure. Articles 1369 and 1609, has been against the financial consequences
The cost of replacing or repairing eliminated by GR 22/2020. Accordingly, of liability for Building Failure. It is
physical damage to (i) power plants, Service Providers and Service Users surely very notable that GR 22/2020
(ii) bridges, railways and toll roads, (iii) should, rightly, be concerned that expressly provides that (i) the financial
mineral processing & refining facilities the risk of them being held liable for consequences of liability for Building
and tailings dams and (iv) pipelines Building Failure has become much more Failure may be “assigned” to insurance
and storage tanks, while significant, immediate and real with the issuance of companies, (ii) Service Providers and
can be greatly overshadowed by the GR 22/2020. It would not be surprising, Service Uses should share the premium
resulting loss of revenue and reduction/ therefore, if Service Providers and for insurance coverage in respect of
elimination of profit during the time Service Users now see a much greater Building Failure and (iii) the premium
it takes to affect the physical repair or need for proper insurance coverage than share of Service Providers should form
replacement of the facility. was perhaps previously the case. part of the Construction Services fee
Having regard to the above, it is The writer reads GR 22/2020 as due to them from Service Users. The

facilities resulting from Construction
Services are also not uncommon in the
energy, infrastructure, mining and oil &
gas industries. Accordingly, companies
operating in these industries should be
mindful of the improved likelihood of
being able to recover for the failure of
any physical facilities resulting from
Construction Services following the
issuance of GR 22/2020.
Insurance companies are also likely
to be major beneficiaries of GR 22/2020
given the overt encouragement GR
22/2020 gives Service Providers and
Service Users to obtain professional
indemnity insurance and building
insurance so as to avoid the financial
consequences of Building Failure
resulting from their non-compliance
with relevant Security, Safety, Health
and Sustainability Standards.
Service Providers, in particular, will
be understandably concerned about their
increased risk of liability for Building
Failure.
CA | Boim
Ministry of Public Works & Housing types of Building Failure. However,

seems to have done everything, short the precise circumstances in which
This article was written by Bill
of making it compulsory for Service that liability arises and its scope were
Sullivan, Senior Foreign Counsel
Providers and Service Users to insure always very uncertain. with Christian Teo & Partners
against Building Failure, to promote GR 20/2020 has now removed much and Senior Adviser to Stephenson
the local insurance industry. Looking at of the previous uncertainty regarding Harwood LLP. Christian Teo
this in a more positive light, though, this liability for Building Failure and, in the & Partners is a Jakarta based,
Indonesian law firm and a
may be seen as further evidence of an process, made it far more likely than
leader in Indonesian energy,
intention, on the part of the Government, was previously the case that Service infrastructure and mining law
to make it considerably easier to recover Providers and Service Users will be and regulatory practice. Christian
damages for Building Failure than was held liable for Building Failure where Teo & Partners operates in close
previously the case pursuant to ICC it is the result of non-compliance with association with international
law firm Stephenson Harwood
Articles 1369 and 1609. relevant Security, Safety, Health and
LLP which has nine offices across
Sustainability Standards. Asia, Europe and the Middle
Summary & conclusions The energy, infrastructure, mining and East: Dubai, Hong Kong, London,
Indonesian law has long oil & gas industries are all major users of Paris, Piraeus, Seoul, Shanghai,
recognized that architects, contractors Construction Services. Problems with the Singapore and Yangon.
and owners may be liable for certain performance and reliability of physical

COALNEWS
Golden Eagle mulls coal

gasification at S. Sumatra
mine
IDX-listed coal mining firm PT.
Golden Eagle Energy Tbk is studying the
possibility to undertake coal gasification
at its coal mining concession in South
Sumatera.
According to the company’s public
expose results filed with the IDX, the
company is considering coal gasification
as one of the alternatives to exploit the
company’s huge coal reserves.
“As the government is pushing
coal miners towards the downstream
sector, we are open to the possibility
(for coal gasification) as the reserves in
South Sumatra mine is quite huge,” the
company said.
The company’s subsidiary PT.
Triaryani operates a low-rank coal
concession in Musi Rawas regency with
total JORC-compliant proven and probable
reserves of 275 million tonnes.
Bayan secures $133 loan

extension
IDX-listed coal mining firm PT. Bayan
Resources Tbk announced that it has
secured a US$133 million loan extension
from PT. Bank Permata Tbk.
The company said that the revolving
CA | Khalsa
loan carried an interest rate of LIBOR +
2.75 percent and will mature in December
2023. The company said the revolving
loan is utilized to support its working million-20.1 million tons, and sales target dedicated for China, Japan, Indonesia,
capital, bank guarantee and foreign of 22 million tons this year. Philippine, Thailand and other Southeast
exchange transaction. “We have not yet completed the Asia markets. “This December, we are
data, but we estimate the production and negotiating for extension of some contracts
ITMG expects lower sales realizations will be slightly lower with quite large quantity, and we expect
production, sales this year than targets due to high rainfall in the there will be agreement in early next
IDX-listed coal producer PT Indo fourth quarter,” Yulius Gozali, Director year,” Yulius said.
Tambangraya Megah Tbk (ITMG) expects of Investor Relations at ITMG, said to ITMG produces coal from a number
coal production and sales this year to be petromindo.com. Yulius added that the of coal concessions in Kalimantan, namely
lower than initial target due to high rainfall company is preparing budget plan for PT Indomindo Mandiri, PT Trubaindo
in the fourth quarter. next year. Coal Mining, PT Bharinto Ekatama and
ITMG has set production target of 19 ITMG’s coal sales this year are PT Jorong Barutama Greston.

Golden Eagle’s 9-month output dips 36%, plans higher 2021 output
I
DX-listed coal miner PT Golden tons, down compared to 1.36 million tons in electricity firm PT PLN.
Eagle Energy Tbk saw coal the corresponding period of last year. Golden Eagle’s coal are mostly
production in the nine-month Golden Eagle through subsidiary exported to India and China. During
period ending September of this Triaryani operates three producing coal the nine-month period of this year, the
year tumbled by 36 percent year-on-year concessions with combined acreage of company managed to increase export to
due to the weakening demand amid the 2,143-ha in South Sumatra, and through other markets in Southeast Asia including
pandemic. another subsidiary PT Internasional Prima Thailand, the Philippines, and Cambodia.
Given the weaker production Coal operates a 3,238-ha concession in “We continued export to China when
performance, the company is expected to East Kalimantan which has also been in demand started to recover,” Roza said.
be only able to realize about 85 percent production since 2010. Roza said that the company plans to
of this year’s coal production target of Meanwhile, the company’s coal sales produce about 2 million tons of coal next
1.5 million tons, Golden Eagle President volume in the nine-month period of this year. “We’ll not make things that (will
Director Roza Permana Putra said as year tumbled by 38 percent to 869,000 cause) drastic changes next year. We’ll
quoted by news portal kontan.co.id. tons from 1.20 million tons in the same keep focusing on increasing production
The company, however, plans higher period of last year. and maintain business sustainability,” Roza
production target next year of 2 million tons The company, however, managed to said. He added that the company was also
amid signs of recovery in the coal market. increase sales in the domestic market. looking for opportunity to enter the coal
Roza said that coal production in the “We participate in supply coal for PLN,” downstream sector to take advantage of
January-September 2020 reached 870,000 Roza said, referring to state-owned incentives prepared by the government.
CA | Khalsa

[COALNEWS]
Delta Dunia plans higher

2021 capex
IDX-listed coal mining services
company PT Delta Dunia Tbk plans
higher capital expenditure next year as
it anticipates new mining contracts and
higher production volume request from
existing clients in the wake of recent
recovery in the price of the commodity.
Delta Director Eddy Porwanto said
the company will allocate about US$100
million worth of capex next year, which he
said is higher than 2020 capex, particularly
to be used for purchasing new heavy
equipment.
“There are currently a number of
equipment which remain idle. However,
in line with rising price of coal, we
must anticipate the possibility of rising
(production volume) demand from
customers or from new contracts,” he said
at the company’s public expose meeting.
He said that the company is optimistic
CA | Boim
to be able to grab new contracts next year.

“We’re indeed seeking for or discussing
a number of new prospects. And we’re Head Regina Korompis previously said Lestari (EBL) valued at Rp661 billion.
confident that in 2021 there will a new that BUMA was also in the process of “The success of the company to
prospect. We’ll announce it when we have extension of its contract with coal firm PT get a contract from PT EBL, which is
(obtained) the new contract,” Eddy said. Kideco Jaya Agung, which is expected to a subsidiary of Hasnur Group, should
Delta earlier announced that its be concluded end of this year. improve the company’s performance
operating subsidiary PT Bukit Makmur Delta Dunia, through BUMA, works going forward,” President Director of CK
Mandiri Utama (BUMA) has extended its in 11 coal projects namely PT Adaro Feriwan Sinatra said in Jakarta recently.
mining services contracts with coal miner Indonesia pit Paringin, Kideco, Berau EBL’s mining site is located in
PT Berau Coal in relation to Binungan Coal pit Lati, Berau Coal pit Binungan, PT Block 3 Balimas, Lokpaikat subdistrict;
Block 7 mine operation to March Sungai Danau Jaya, PT Tadjahan Antang Piani and Bungur in Tapin Regency,
2025. The Binungan mine is located in Mineral, PT Angsana Jaya Energi, PT Pada South Kalimantan province. Under the
Berau Regency, in the Province of East Idi, PT Tanah Bumbu Resources, PT Insani contract, CK will handle overburden
Kalimantan. Baraperkasa and PT Indonesia Pratama. removal activities and also renting heavy
The company said that the new equipment to meet the needs of EBL.
contract is valued at approximately Rp ABM Investama unit bags The average production of overburden
13.5 trillion or equivalent to close to mining service contract removal of CK currently stands at around
US$1.0 billion. It added that average from EBL 8 million BCM (Bank Cubic Meter) per
annual production is expected to be Mining contracting firm PT Cipta year with coal production of around 2
within the range of 75 - 90 million bcm of Kridatama, a subsidiary of diversified million tons per year.
overburden removal and 7.0 – 7.5 million energy and mining company PT ABM CK was established on April 8, 1997,
tons of coal. Investama Tbk, has secured a mining and has since grown to become a large-
Delta Dunia Investor Relations service contract from PT Energi Batubara sized mining service provider firm.

[COALNEWS]
IEEFA: China’s ban is less of a threat to Australia’s

coal industry than international climate ambition
T
he decision by China’s National are not). Our coal exporters will however shut down coal production near term
Development and Reform survive this near-term political fight, due to a spate of deadly accidents, just
Commission to formally and probably far better than our wine or lobster as winter heating demand has kicked
indefinitely block Australian export industries, by comparison. in. Meanwhile the Chinese industrial
coal imports is a key threat to Australia’s Our coal exporters will survive this economy is powering along. So the
political and economic wellbeing. near-term political fight Chinese domestic thermal coal price has
Australia can never expect to win a trade There are no coal ships destined for jumped 35% to 740/t yuan in the last
war with its biggest export partner, and it China being loaded in Australia now. For three months. Seaborne thermal coal
is sheer political and economic suicide to most industries, that would be devastating. prices have rallied from a low of US$46/t
try to do so. But is it devastating for the For coal, not so much. In fact, a look at the to over US$70/t in the same timeframe.
Australian coal export industry? Not at all. share prices of Whitehaven Coal and New Even as total volume of Australian coal
Increased climate ambition by world Hope Corporation would suggest quite the exports have dropped in the December
leaders is likely to be terminal for our coal opposite. Since the September 2020 trough, quarter, the value has surged, and more
exports if we look out a couple of decades and acknowledging the sharp price falls on importantly, the profitability much more
Far more strategically threatening Tuesday, Whitehaven shares have rallied so (notwithstanding the 10% rally in the
in the long term for Australia and our 70% and New Hope are up almost 20%. Aus$/US$, lifted by the unprecedented
coal industry is the pledge by China’s Why? Coal is coal, at least to rally in iron ore prices). Hence the
president Xi Jinping to reach net zero a finance analyst like me, if not an Whitehaven Coal and New Hope increase
emissions by 2060, which was rapidly engineer. Australia sells the vast majority in share price.
followed by net zero emissions by 2050 of its coal to Japan, South Korea and The 25% collapse in the Dalrymple
pledges from Japan’s prime minister Taiwan. And if China buys more Russian, Bay Coal Terminal share price is a
Yoshihide Suga and South Korea’s South African and Indonesian coal to clearer perspective of longterm structural
president Moon Jae-in. This series of replace Australian coal, then we can, by headwinds
sudden and powerful pledges of increased and large, simply swap customers, maybe The coal export sector outlook seems
climate ambition by world leaders is with a month’s disruption. Total demand profitable again – in the near term. But the
likely to be terminal for our coal exports doesn’t change, nor does supply – at 25% collapse in the Dalrymple Bay Coal
if we look out a couple of decades. least not in the near term. Sure, there are Terminal share price since its initial public
Australia is caught in the geopolitical some boiler and blending constraints, but offering last week is a clearer perspective
quandary of having China as our key notwithstanding coal luddite claims that of the longterm structural headwinds
trade partner and the United States as our Australia’s coal is slightly less carbon Australia’s coal industry is facing. Far
key military ally. When US president polluting than someone else’s seaborne better for our Hunter Valley, La Trobe
Donald Trump started a trade war with coal, the minute difference is irrelevant Valley and Bowen Basin communities that
China, it was never going to turn out well – all coal is almost 100% more carbon we as a nation acknowledge the science
for Australia. And incoming president intensive than wind, solar, hydro, nuclear of climate change, prepare a national
Joe Biden is unlikely to change tack or energy efficiency. Or green ammonia, roadmap, ideally with a destination and
too materially where China and trade as Japan’s JERA is now thinking. time of arrival clearly acknowledged.
and technology are concerned (whereas The coal industry is actually The investment, employment and
on climate, Biden’s arrival changes benefiting from a near-term relief export opportunities for Australia are
everything). But we in Australia are like rally. In September Australian coal enormous, and exciting. To steal a very
a mouse caught in the middle of two exporters were losing money with good line from Ross Garnaut and Mike
sparring elephants. every tonne of coal they exported. In Cannon-Brookes – better we focus on
In business, the best rule is that the December, the picture is very different. building Australia as a renewable energy
customer is always right (even if they China’s key Shanxi province has just superpower.

[COALNEWS]
and its clients are still assessing coal

demand for 2021.
BUMA signs contract

extension with Berau Coal
IDX-listed coal mining services
firm PT Delta Dunia Makmur Tbk said
that its operating subsidiary PT Bukit
Makmur Mandiri Utama (BUMA), has
extended its mining services contracts
with coal miner PT Berau Coal in relation
to Binungan Block 7 mine operation to
March 2025.
The Binungan mine is located in
Berau Regency, in the Province of East
Kalimantan. The company said in a
statement that the new contract is valued
at approximately Rp 13.5 trillion or
equivalent to close to US$1.0 billion.
It added that average annual
production is expected to be within
the range of 75 - 90 million bcm of
overburden removal and 7.0 – 7.5 million
tons of coal. “BUMA continues to explore
opportunities and pursue discussions with
CA | Khalsa
both existing and new potential customers

for new contracts,” Delta Dunia said.
Delta Dunia Investor Relations
United Tractors sets higher particular for developing processing plant Head Regina Korompis previously said
capex for 2021 and operation improvement. that BUMA was also in the process of
IDX-listed diversified mining and Sara said the company’s main revenue extension of its contract with coal firm PT
mining service provider PT United contributors next year will come from Kideco Jaya Agung, which is expected to
Tractors Tbk (IDX:UNTR) has set capital gold mining through the Martabe gold be concluded end of this year.
expenditure (capex) of US$290 million project, coal mining service through PT BUMA’s coal mining services for
for 2021, higher than planned capex of Pamapersada Nusantara and the heavy Berau Coal accounted for up to 57.8
US$230-US$250 million in 2020. equipment segment. As for next year, the percent of the total OB removal volume
Corporate Secretary of the company gold production of Martabe is projected to this year, while Kideco’s accounted for
Sara K. Loebis said the realized capex this reach 350,000 ounces as its operation is around 11.9 percent.
year is estimated to reach around US$190 slowly returning to the normal level. Delta Dunia, through BUMA, works
million, lower than the planned capex due In the first ten months, UNTR gold in 11 coal projects namely PT Adaro
to Covid-19 pandemic. sales reached 277,600 ounces or 19.76 Indonesia pit Paringin, Kideco, Berau
Sara said around 50 percent of next percent lower than realized sales volume in Coal pit Lati, Berau Coal pit Binungan, PT
year’s planned capex will be allocated to the same period last year at 346,000 ounces. Sungai Danau Jaya, PT Tadjahan Antang
the mining contractor segment, namely to Sara said mining contracting service Mineral, PT Angsana Jaya Energi, PT
replace aging heavy equipment and around is projected to record negative growth of 5 Pada Idi, PT Tanah Bumbu Resources,
40 percent or around US$120 million will percent to 0 percent next year as the coal PT Insani Baraperkasa and PT Indonesia
be allocated for gold mining activities, in sector is yet to fully recover. The company Pratama.

Transcoal renews transshipment contract with coal miner
I
DX-listed coal shipping and logistics of the company’s transport volume. services for the clients. Around half of
firm PT Transcoal Pacific Tbk said it The company has provided services for the company’s annual volume is from
has signed extension of transshipment Arutmin since 2007 and for KPC since transshipment services and the other half
services contract with one of the 2014 under long-term contracts. from coal transport, Dirc said, and most
largest coal mining firms located in East Transcoal CEO Dirc Richard Talumewo of the coal transportation is shipments to
Kalimantan Province. Transcoal said in a told Petromindo.com early December that power plants.
statement that the contract period is for 13 the company was aiming to increase coal The company’s current fleet includes
months ending December 2021, and worth transport volume to 53-54 million tons in 100 sets of tugs and barges, 5 mother
Rp 138.8 billion. 2021 as domestic coal demand is expected to vessels, 3 floating cranes. Dirc said that
The company said it has no affiliation pick up. He said that coal transport volume the company plans to expand its fleet to
with the coal mining customer, but did not this year was estimated to reach only 42-43 anticipate increasing demand. “Currently
disclose the identity of the customer. million tons, or down by around 15 percent we own only 40 percent of the vessels
Transcoal’s biggest clients are South compared to last year, due to Covid-19 that we operate. Over the next five years,
Kalimantan-based coal miner PT Arutmin pandemic that had lowered coal demand we want to increase the number of own
Indonesia and East Kalimantan-based from domestic power plants. vessels to around 70 percent, which will
coal miner PT Kaltim Prima coal (KPC), The company provides barging, mean to invest around US$150 million
which accounted for more than 90 percent transshipment, and vessel transport over the next five years,” he said.
CA | Khalsa

[COALNEWS]
Indika to apply for renewal of Kideco’s

operating permit next year
I
DX-listed integrated energy the operating permit),” Azis said at a One of the conditions for the renewal
company PT Indika Energy Tbk said public expose meeting. of coal miners’ PKP2B operating permit
it will submit a request to the Kideco’s existing PKP2B is set to into special mining business license (or
Ministry of Energy and Mineral expire on 13 March 2023. The company IUPK) is investment in the downstream
Resources for a renewal of the operating operates a 47,500-ha coal concession in industry including coal gasification.
permit of its coal subsidiary PT Kideco Paser Regency, East Kalimantan. Azis said that the company has
Jaya Agung next year. Kideco is the largest revenue conducted pre-feasibility study for a
Indika Vice President Director and contributor to Indika’s consolidated proposed underground coal gasification
CEO, Azis Armand said that after the revenues. As per end of September project in East Kalimantan. The pre-FS
request is made, the company will have to 2020, Kideco accounted for 55 percent of is expected to be completed in the second
hold talks on a number of related issues Indika’s total revenue. semester of 2021. The company has
with the ministry, thus there must be Kideco, which is the country’s third also signed MOU on coal gasification
sufficient time for the discussion prior largest coal miner, is expected to produce with state-owned oil and gas firm PT
to the expiry of Kideco’s current coal 33 million tons of coal this year, according Pertamina.
contract of work (or PKP2B). to Indika Director Retina Rosabai. As Azis welcomes a number of planned
“We have made a plan (to submit per end of September, realized output was incentives to be provided by the
the request for renewal of the PKP2B), 23.9 million tons. “For 2021, our initial government for coal miners engaged in
hopefully before the end of 2021 we have (production) target is 30 million tons,” coal downstream sector including giving
filed the application for an extension (of Retina said. life of mine operating license.
CA | Boim

domestic dimethyl ether (DME) plants
have started production.
Djoko said that in a bid to help cut
down LPG import, the government has
pushed for the development of city gas
pipeline networks across the country
to allow households to convert into
natural gas, and also has pushed for the
development of coal gasification projects
to produce DME.
Coal miners holding the so-called coal
contracts of work (or PKP2B) are required to
invest in coal downstream industry including
Petrosea sets lower Capex engineering design (FEED) stage, said coal gasification as part of conditions for
for 2021 Novan. The project contract was signed on renewal of their operating licenses (PKP2B).
IDX-listed mining service provider PT March 23, 2020. There are a number of PKP2B coal miners
Petrosea Tbk (IDX:PTRO) has decided At the end of October 2020, Petrosea whose operating licenses are set to expire
to set aside capital expenditure (Capex) held ongoing project contracts on-hand over the next few years.
of US$100 million for 2021, lower than worth US$812 million, higher compared to State-controlled coal mining firm PT
planned Capex for 2020 at US$175 project contracts at the end of 2019 valued Bukit Asam Tbk has recently signed a
million, taking into account realized Capex at US$500 million. final agreement with partners state-owned
in 2020 and programs to be carried out oil and gas firm PT Pertamina and US-
next year, a company official said. RI to stop LPG import in based Air Products and Chemicals Inc for
Director of Petrosea Romi Novan 2030 as DME plants start the development of a DME plant in South
Indrawan said a large amount of the Capex production Sumatra Province. Construction of the
will be used to support mining service Indonesia is projected to no longer project is expected to start in mid-2021
projects at Kideco Jaya Agung, aiming at need to import LPG in 2030 as a number and operation targeted to start in second
maintaining the coal production volume at of coal gasification projects, which convert quarter of 2024. The plant will have
the mining company. coal into DME, a substitute for LPG, will production capacity of 1.4 million tons of
“The Capex will be used to support start production from 2024 through 2030. DME per year, which can reduce about 1
the target of adding new clients,” he said Djoko Siswanto, Secretary General of million tons of LPG.
during a virtual public presentation on the National Energy Council (or DEN), Djoko said aside from PTBA, there are
Tuesday (15/12). He said a portion of said at a recent webinar that one of the eight other PKP2B coal miners which will
the Capex will also be used to support measures taken by the government to help be engaged in a number of coal gasification
the engineering, procurement, and cut down LPG import is through the coal projects to produce DME, with production
construction (EPC) programs of Petrosea gasification program. scheduled to start from 2024 to 2039.
as well as its digitalized program. He said that the country’s LPG The coal miners are PT Kaltim Prima
Novan said a portion of the Capex consumption this year is estimated at 8 Coal (DME project to start production
would be financed loan facility from million tons, of which 6 million tons (or in 2024 at a volume 1.2 million tons per
banks. As of the end third quarter of 2020, 75%) will be fulfilled by import. In 2025, annum), PT Arutmin Indonesia (in 2025,
the realized Capex of the company reached the national LPG consumption is projected 1.9 mtpa), PT Adaro Energy Tbk (2027,
only US$23.6 million, far lower due to the at 8.8 million tons, but import will decline 1.4 mtpa), PT Kideco Jaya Agung (2028,
Covid-19 pandemic. to only 2 million tons. 0.5 mtpa), PT Berau Coal (2030, 1.4
At present, Petrosea holds some EPC He said that the LPG consumption in mtpa), PT Bahari Cakrawala Sebuku
contracts including the Awak Mas gold 2030 is projected to further increase to 9.7 (2033,1.4 mtpa), PT Mandiri Inti Perkasa
project with a contract value of US$11.45 million tons, but the country is expected (2039, 1.4 mtpa and PT Inti Tirta Prima
million, which is still under the front-end to stop import of the fuel as a number of Sakti (2039, 1.4 mtpa)

[COALNEWS]
CA | Boim
MEMR proposes progressive He added that the progressive royalty ministry in a virtual webinar hosted by the
coal royalty scheme was proposed taking into account Indonesia Coal Mining Association.
The Ministry of Energy and Mineral the average HBA in the past 10 years Wafid added that coal export to the
Resources (MEMR) has proposed a and projected HBA over the next 20 China market is estimated to range from
progressive royalty scheme, linked to years period. Meanwhile, regarding coal 185 million tons to 202.3 million tons
coal price development specifically the allocated for the domestic market, both in 2021. “The coal quality requirement
government coal reference price (or HBA), ministries have agreed on a flat 14 percent ranges ranging from 3,000-6,000 kcal/kg
for exported coal. royalty, he added. (NAR) for power plants, cement plants
Ministry’s Director General of Coal and The Ministry of Energy and Mineral and steelmakers,” he said.
Mineral Ridwan Djamaluddin said that the Resources projected the country’s coal Wafid also sees growing coal demand
proposed progressive coal royalty scheme export volume next year to be in the range in markets in South and Southeast
was made in relation to the proposed new of 406.3 million-427 million tons, higher Asia such as Bangladesh, Pakistan and
government regulation on non-tax state than this year’s export target of 395 million Vietnam. The country’s coal production
revenue (or PNB) currently being drafted at tons. Meanwhile, coal production next in the 11-month ending November of this
the Ministry of Finance (MOF). year may be limited at around 550 million year totaled 504.62 million tons, or about
“The MEMR has proposed progressive tons, or the same as this year’s target. 91.75 percent of the government’s full-
royalty linked to coal price … We’re year target of 550 million tons, according
still discussing it (with MOF),” he told Government sees higher coal to the Ministry of Energy and Mineral
lawmakers during a hearing session with export next year Resources data seen on Monday
the House Representatives Commission The government expects higher coal Realized export in the 11-month
VII on energy and mining as quoted by export potential next year on strong period reached 278.84 million tons, or
news portal bisnis.com. demand in key market of China and also in 70.59 percent of the full-year target of
Director of Coal Business new markets in the region. The Ministry of 395 million tons. Meanwhile, realized
Management at the ministry, Sujatmiko Energy and Mineral Resources projected domestic market obligation (DMO) as per
said that the Ministry of Finance’s Fiscal the country’s coal export volume next year end October reached 108.45 million tons,
Policy Agency (or BFF) has proposed for to be in the range of 406.3 million-427 or 69.97 percent of the full-year DMO
a flat 24 percent royalty. million tons, higher than this year’s export target of 155 million tons.
But the MEMR proposed the target of 395 million tons. Wafid said on 20 October that
progressive royalty scheme taking into “The export potential remains widely the country’s coal output next year is
account the business sustainability of the open in 2021. The export potential in projected to increase to 604 million tons
coal miners, while at the same ensuring 2021 is expected to be between 406.3 under an optimistic scenario, while under
higher revenue for the government from million to 427 million tons in 2021,” said a moderate scenario output is projected
the coal sector as mandated under the new Muhammad Wafid, Director of Mineral at 591 million tons, and 527 million tons
Mining Law No 3/2020. and Coal Development Program at the under a low production scenario.

Government plans subsidy The DME product is expected to help substitute about 1 million tons of LPG.
for DME the country ends dependency on imported PTBA President Director Arviyan
The government plans to provide LPG, and ease the current account deficit Arifin has said also said that DME project
subsidy for dimethyl ether (DME) product problem. Indonesia’s LPG consumption requires government subsidy to help ensure
to help ensure its price competitiveness this year is estimated at about 8 million its competitiveness. He suggested there
against LPG. tons, of which more than 70 percent will must be regulation that would allow for the
Septian H. Seto, Deputy at the be fulfilled via import. reallocation of the LPG subsidy to DME.
Office of the Coordinating Minister for Several coal miners have announced Irwandy Arief, Expert Staff to
Maritime Affairs and Investment, was plans to enter coal gasification projects to the Minister of Energy and Mineral
quoted by Kontan as saying that based produce DME. The most advanced plan is Resources, said that the ministry has
on the simulation, DME product requires a proposed DME project to be developed proposed nine types of incentives for coal
government subsidy to be able to compete by state-controlled coal miner PT Bukit gasification projects to the Ministry of
with LPG whose price has tumbled to the Asam Tbk (PTBA), state-owned oil and Finance. Aside from subsidy, other types
lowest ever level. gas firm PT Pertamina, and US-based Air of incentive include tax holiday, VAT
He said that the proposed subsidy is Products and Chemicals Inc in Tanjung exemptions, royalty exemption for the coal
still being discussed with the Ministry of Enim, South Sumatra Province. miners, and market guarantee.
Finance. He added that the subsidy will Under the plan PTBA will provide
depend on gas price development. the required coal feedstock, Air Products Golden Energy plans higher
The subsidy policy will be stipulated to provide the technology and investment coal production in 2021
in the upcoming implementing requirement, while Pertamina will be IDX-listed coal producer PT Golden
government regulation of the new DME off-taker. Construction is expected Energy Mines Tbk plans coal production
Employment Creation Law which among to start in the first semester of 2021 in the volume of 37 million tons next year, up
others mandates coal miners to invest in hope it will start operation in the second compared to the expected 32 million tons
downstream business including DME quarter of 2024. The plant will produce for this year.
production. 1.4 million tons per year of DME, that can “We expect production in 2021 will
be better than in 2020 with the allocation
of approximately 37 million tons,” R.
Utoro, Director of Golden Energy, said in
a virtual public expose.
The company produced 23.9 million
tons of coal as of September 2020 or 16
percent higher than in the same period
of last year at 20.7 million tons. Golden
Energy produces coal from subsidiaries
namely PT Borneo Indobara, PT Kuansing
Inti Makmur and PT Barasentosa Lestari.
Bonifasius, President Director of
Golden Energy, mentioned that the market
has shown positive signal in recent weeks.
“Newcastle index is US$82 per ton today
and the demand is quite good for the first
quarter 2021,” he said.
Bonifasius added that winter season in
some coal markets will increase the energy
demand while their stock level is quite
CA | Khalsa
low. “While Indonesia deals with heavy

rainfall due to La Nina,” he said.

[COALNEWS]
to Indika, includes the operations of the

new fuel terminal with capacity of 96,000
kiloliters and East Kalimantan and other
planned terminals in other areas, expansion
into gold mining business through the
acquisition of Awak Mas gold project
in South Sulawesi, which is expected to
start production in 2022-23 time frame.
The company is also eyeing to enter
the renewable energy business, it said,
adding that it is also embarking on digital
technology that can deliver efficiency and
optimization to its mining customers.
Indika booked net revenue of US$
1.53 billion in the nine month of 2020,
down by 26 percent from last year’s same
period revenue of $ 2.07 billion.
China formalizes cut of

Aussie coal, prioritizes import
from RI
China has formalized import
restrictions targeting Australia’s US$14
billion coal exports, the Global Times, a
Chinese state media reported.
The National Development and
Reform Commission met 10 major power
companies over the weekend and granted
approval for them to import coal without
clearance restrictions, except for Australia,
CA | Khalsa
according to the report.

The report suggested China will
prioritize imports from Mongolia,
Indika seeks to diversify activities, high CV coal mine PT. Multi Indonesia and Russia, and power
business Tambang jaya Utama, coal shipping firm companies will share inventory to ensure
IDX-listed mining firm PT. Indika PT. Mitrabahtera Segara Sejati. The prices do not exceed 640 yuan ($97.8) per
Energy Tbk plans to diversify business to remaining 24 percent is contributed by its ton. China’s import restrictions have left
achieve 50 percent of revenue from the upstream oil, gas engineering and services hundreds of millions of tons of Australian
non-coal sector in 2025. company PT. Tripatra and from Petrosea coal anchored off the Chinese coast in a
According to the company’s Engineering & Construction. deepening trade dispute with Beijing.
presentation filed with the IDX, the Indika said expansion to non-coal Relations between the two countries
company’s revenue is currently 76 business including expanding Tripatra’s have been strained by Australia’s position
percent contributed by coal-related units. EPC capability into petrochemical, on China’s territorial pursuits, perceptions
Coal mining unit PT. Kideco Jaya Agung downstream oil and gas and power plants, Australia has unfairly targeted China with its
contributes 55 percent of the company’s and to expand Petrosea’s engineering and foreign interference regime and Canberra’s
overall revenue, followed by coal mining construction business. call for independent investigation in the
contractor Petrosea Mining, coal trading New business expansion, according origin of the Covid-19 pandemic.

PLN to shift to lower Batubara, a coal subsidiary of PLN, said in Kalimantan, for a total shipment quantity
quality coal a webinar on Tuesday. of 80,000 tonnes. Total shipment value for
State-owned electricity firm PT PLN Kemal stated that boilers of the the first shipment will be $4.12 million
will shift to lower quality coal in the coal fired power plants will adapt to with planned delivery schedule on a
future, consuming more coal with calorific the abundant low rank coal reserves in bi-weekly basis for each shipment. The
value of 4,000-4,400 kcal/kg (GAR) to Indonesia. PLN Batubara owns a number company expects to deliver the contract
take advantage of the country’s huge low of operating coal mining subsidiaries such in full, therefore expecting to bring
rank coal reserves. as PT Jambi Prima Coal and PT Banyan in total revenue up to $103 million in
PLN’s coal consumption is currently Coalindo Lestari. 2021, depending on the Coal Price Index
dominated by coal with CV ranging from throughout the year.
4,400-4,800 kcal/kg (GAR). For this year, KinerjaPay bags 2MT China Once the company completes the
PLN is estimated to consume as much as coal supply contract delivery of the contract in full, it is
51 million tons of coal with CV of 4,400- US-listed firm KinerjaPay Corp, a expected to earn at least US$9.8 million in
4,800 kcal/kg, compared to 29 million tons digital payment and e-commerce platform Operating Profits on the over $100 million
of coal with CV of 4,000-4,400 kcal/kg. Company with its business operations in total revenue, it said.
However, by 2028, the coal based in Indonesia, announced that it Company’s CEO & Chairman, Edwin
requirement is expected to be dominated has signed a new Indonesian bituminous W. Ng, commented: “Our team has
by the lower quality coal of as much as 69 coal contract with a China Construction departed to East Kalimantan with the buyer
million tons (with CV of 4,000-4,400 kcal/ Investment Group (Ningbo) Trading Co., this week to conduct the site survey and
kg), compared to 49 million tons of coal Ltd. to supply up to 2 million tonnes shipment preparation. We expect to deliver
with CV of 4,400-4,800 kcal/kg. within the next 12 months. our first shipment by the end of next month.
“There will be a shift in the coal At present stage, the contract’s unit We will also work with local supplier and
quality requirement in the future. We price for Indonesian bituminous coal logistics Companies to ensure a smooth
will consume more lower quality coal, in bulk based on coal grade NCV 5500 delivery process, as well as PT. China
even lower than 4,000 kcal/kg,” Kemal kcal/kg (ARB) is US$51.50 /MT FOB Certification & Inspection Group (CCIG) to
Djamil Siregar, President Director of PLN Trimmed Geared Mother Vessel at East monitor the quality of the coal.”
CA | Khalsa

[COALNEWS]
MBSS bags coal barging Bumi plans flat coal subsidiaries namely PT Kaltim Prima Coal
contract from affiliated output in 2021 (KPC) and PT Arutmin Indonesia (AI). As
company IDX-listed coal producer PT Bumi of September 2020, KPC produced 44.4
IDX-listed coal shipping firm PT Resources Tbk plans coal production of 82 million tons of coal and AI produced 16.2
Mitrabahtera Segara Sejati Tbk (MBSS) million to 85 million tons in 2021, or the million tons.
reported on Monday it has secured a term same as this year’s target. Most of Bumi’s coal output in the
barging contract from affiliated company As of September 2020, the realized nine-month period of this year were
East Kalimantan coal miner PT. Kideco coal production was 60.7 million tons or dedicated for domestic market (30
Jaya Agung. 3 percent lower than 62.8 million tons in percent), China (21 percent) and India
Under the contract that was signed on nine-month period of 2019. (20 percent).
December 10, 2020, Kideco will utilize “We will follow the (2021) RKAB Ido added that Bumi has contracted
MBSS’ tug and barge to transport coal to approved by the government, which is the 90 percent of the coal sales target for
Jawa-7 coal-fired power plant in Banten same level as in 2020, at the minimum,” 2021 under long term agreement, while
until November 2021. Ido Hutabarat, Director of Bumi, said in a 10 percent is allocated for spot market.
According to the company the value virtual public expose, referring to the work “We allocate 10 percent for spot market
of the contract is approximately US$10 and budget plan. because we want to tap into the price ups
million subject to fuel to be consumed. Bumi produces coal form its and downs in the market,” he said.
The Jawa 7 is a 2x1000 MW power
plant owned by PT Shenhua Guohua
Pembangkitan Jawa Bali. The company
is 70 percent owned by China Shenhua
Energy Company Limited and 30 percent
by PLN’s subsidiary PT PJB Indonesia.
PTBA plans mine-mouth

power plant capacity
expansion
IDX-listed state coal mining firm PT.
Bukit Asam Tbk said that (PTBA) it plans
to gradually expand its mine mouth power
in South Sumatra by 2,000 MW.
The company’s Business Analyst
Marzuki said that PTBA has sufficient
coal reserves to expand the Sumsel-8 2 x
620 MW mine mouth power plant, which
is expected to come onstream in 2022.
He said that the 2x1000 MW
expansions will be built using ultra super
critical technology which is deemed to be
more efficient and emit less pollution.
PTBA is teaming up with China
Huadian to develop the Sumsel-8 power
plant with an investment of US$ 1.68
billion. PTBA has 45 percent shares in the
power plant with China Huadian holding
CA | Boim
the balance. The power plant will consume

around 5 million tonnes of coal annually.

CA | Khalsa
PTBA, partners sign Products and Chemicals CEO Seifi “The government plans 550 million
agreement on coal-to-DME Ghasemi, witnessed by the minister. tons (coal) production, the same level as
project The principal agreement was initially this year,” Sujatmiko, Director of Coal
State-controlled coal miner PT Bukit expected to be signed in November of this Development at the Ministry of Energy
Asam Tbk (PTBA), state-owned oil and year. Under an initial agreement signed and Mineral Resources, said in a virtual
gas firm PT Pertamina, and US-based Air in 2018, the three companies agreed webinar. He said that the flat output
Products and Chemicals Inc finally signed to cooperate in the development of an target has taken into account coal miners
the final agreement on cooperation in the estimated US$2.1 billion DME plant production capacity and efforts to limit
development of coal gasification project located at PTBA’s mine site in Tanjung the country’s coal output, in a bid to help
in South Sumatra. Minister of Energy Enim, South Sumatra Province. revive the price of the commodity.
and Mineral Resources Arifin Tasrif Under the plan, PTBA will provide the He said that all coal miners in the
said in a statement that this agreement required coal feedstock, land for the DME country must adjust their 2021 production
is a milestone in the development coal plant, and supporting infrastructure, while plans to the government’s output target.
downstream sector in the country. Air Products will act as the investor and Meanwhile, Kontan, citing data from
He said that the coal gasification provide the technology, and Pertamina as the government, said that about 351.44
project aims to process low grade coal the off-taker of the DME output. million tons, or 64 percent of the 2021
into dimethyl ether (DME), which can be Arviyan said recently that once production volume target, are allocated for
used as a substitute of LPG, which in turn the final agreement has been signed, coal miners holding licenses issued by the
would help reduce the country’s import construction is expected to start in the central government, and the rest allocated
of the fuel. Indonesia currently imports middle of 2021, and the project is targeted for miners holding licenses issued by local
about 70 percent of its LPG consumption. to start operations in the second quarter governments.
“This is one of the milestones of the of 2024. “In 2025, we have an option to Of the 351.44 million tons volume,
national coal downstream development, acquire up to 40 percent interest (in the coal miners holding the PKP2B coal
specifically in developing DME. Going project). And after 20 years, the (DME) contracts of work will be allocated with
forward, the technology is expected to be plant will be owned by the joint venture of 294.66 million production quota; state
efficient and produce DME products that PTBA and Pertamina,” he told lawmakers. miners holding the IUP OP license
are competitive with LPG,” Arifin said. assigned a quota of 24.20 million tons;
The statement said that the agreement Govt sets flat coal output target foreign investment scheme (PMA)
was signed by PTBA President Director The government has set coal miners 32.48 million tons quota; and the
Arviyan Arifin, Pertamina President production target of 550 million tons for remaining 0.1 million tons quota for other
Director Nicke Widyawati, and Air next year, or the same as this year’s target. IUP OP license miners.

MINERALNEWS
PLN to start power supply the 23.3% expected contraction in 2020’s surpassed the Philippines as the largest
next year for Banten steel nickel output. global producer in 2017 following the
maker Growth in the near term will be driven introduction of stringent environmental
State-owned electricity firm PT by a recovery in output in the Philippines regulations in the latter.
PLN said it will start next year supplying and Indonesia, says Fitch, a unit of Fitch But Fitch believes the tables will
electricity to PT Gunung Mulia Steel’s Group. In the Philippines, lockdowns and turn in 2020 onwards as the Philippines
plant in Banten. supply chain constraints over the first half is set to regain its spot as the largest
PLN will make the electricity supply of 2020 had reduced output by 27.7%. global producer due to a restriction on
via the 150 kV Ciruas power substation. Fitch expects this low base effect to nickel ore exports in Indonesia leading
“Electricity will begin to be distributed thus support growth. In Indonesia, the to a halt to mining operations. The
next year, gradually until 2023, totaling maintaining of nickel ore export ban other best-performing major producer
120 MVA,” said PLN Regional Business had significantly hampered domestic will be Australia, which maintains a
Director for Java, Madura and Bali, opportunities for miners to sell their stable regulatory environment and solid
Haryanto WS recently. product, leading to a decline in production. project pipeline. Finally, Russian nickel
He added that the power sale and Fitch expects mineral production to pick production will grow at the slowest rate
purchase agreement between PLN and up in Indonesia as the country ramps up of the top five major producing countries
Gunung Mulia had been signed in April its nickel smelting and refining capacity. in the coming years as few new projects
of 2019. Fitch notes upside risk to its nickel mining come online.
Haryanto said that PLN has also growth forecasts depending on how Australian nickel production growth
signed similar power supply deals with quickly Indonesia will be able to ramp up will also remain positive over the coming
large industries in Banten such as the its downstream capacity. years, due to a healthy project pipeline.
Tanjung Lesung special economic In the longer term, Fitch forecasts Its nickel sector will increasingly gain
zone of 100 MVA and PT Multimas global nickel mine production to grow investor attention as the rising battery
Nabati Asahan of 30 MVA, with power by an annual average rate of 3.7% y-o-y trend prompts miners to develop projects
distribution expected to start next year. over 2021-2029, a significant slowdown in stable operating environments. A
from the 5.9% y-o-y average achieved more positive price outlook for nickel,
Fitch forecasts strong nickel over 2010-2019, which was boosted by underpinned by solid demand growth, will
production in 2021 higher nickel prices at the time and strong support this view.
In its latest industry report, Fitch Indonesian output before another export In the long run, Fitch forecasts,
Solutions forecasts nickel mine production ban in 2014. rising nickel prices will support project
to grow by 8.3% y-o-y in 2021, above the By 2029, Fitch expects global annual development as the economics of nickel
average growth of 5.9% y-o-y experienced nickel production to reach 2.7mnt, mine projects becomes increasingly
over 2010-2019 but not fully replacing up from 2.0mnt in 2020. Indonesia attractive.

[MINERALNEWS]
BRMS gears up gold projects
By Tri Subhki R.
development of copper processing

plant will require longer time than gold
processing plant. “The increase of copper
price is expected to be a bit halted by
2025,” Suseno said.
BRMS plans drilling activities in
Motomboto starting from March 2021
and is expected to publish the discovery
of 5 million tons of gold ore reserve and
resource on March 2022.
Increase reserves
BRMS plans a number of drilling
activities on its gold projects in Sulawesi,
namely PT Citra Palu Minerals and PT
Gorontalo Minerals. These drillings are
expected to add 25 million tons of gold ore
A
mid the increasing gold plant. “The capital expenditure for third reserves and resources by 2022.
price trend, IDX-listed gold processing plant is lower as the supporting Citra Palu Minerals in Central
producer PT Bumi Resources infrastructures are available,” he said. Sulawesi operates Poboya gold mine,
Minerals Tbk (BRMS) is BRMS plans to complete the while Gorontalo Minerals operates
gearing up to develop its gold projects in construction of second gold processing gold and copper mine in Bone Bolango
Sulawesi, operated by two subsidiaries, plant in fourth quarter 2021, and the third Regency, Gorontalo Province. Currently,
PT Cita Palu Minerals and PT Gorontalo processing plant is expected to complete in Citra Palu owns 3.9 million tons of gold
Minerals. the fourth quarter 2023. ore reserves and 7.9 million tons of gold
BRMS allocated US$118 million to In addition, BRMS will focus on the ore resources.
build two gold processing plants at Poboya development of Motomboto gold project BRMS allocates a total US$28.25
gold mine, Central Sulawesi Province. rather than Sungai Mak copper project in million tons of capital expenditure for
Each gold ore processing facility has 4,000 PT Gorontalo Minerals concession in Bone drilling activities ($23 million for Citra
tons per day capacity. Bolango Regency, Gorontalo Province. Palu, and 5.25 million for Gorontalo
Currently, BRMS operates 500 tons Gorontalo Minerals is KK holder Minerals) which will utilize the right
per day gold ore processing plant and it with 24,995 hectares of concession which issues fund.
plans to ramp up capacity up to 8,500 tons has mineral ores consist of copper, gold “It is estimated additional 20 million
per day by 2024. and silver. The company plans to focus tons of gold ore reserves and resources
“For the second processing plant, the on Motomboto gold project due to stable from four prospects in Poboya. From
planned capital expenditure is US$65-70 increase of gold price and more straight Motomboto, Gorontalo is expected
million and the third facility is US$48 forward processing than copper mine. additional 5 million tons gold ore reserves
million,” Herwin W Hidayat, Director of “Gold mine is more straight forward and resources,” Herwin W Hidayat,
BRMS said in a virtual public expose on compared to copper mine in term of Director of BRMS, said in a virtual public
Thursday recently. processing. The stable increase of gold expose on Thursday recently.
Herwin added that the higher capital price offers better return of investment,” Herwin emphasized that these
expenditure for second processing plant Suseso Kramadibrata, President Director discoveries of gold ore reserves and
is due to the construction of the plant and of BRMS, said in a virtual public expose resources are subject to successful drilling
other supporting infrastructures such as on Thursday recently. and a third-party consultant estimate,
waste management facility and power Suseno added that the physical either JORC or KCMI.

[MINERALNEWS]
EGA signs agreements with internationally, in a major milestone in the the issuer’s capacity to meet its long-
INALUM development of a knowledge economy in term financial commitments on the debt
Emirates Global Aluminium (EGA), the UAE. Aluminum Bahrain’s Potline 6, security, relative to other Indonesian
the largest industrial company in built with EGA’s DX+ Ultra technology, issuers, is strong. However, the issuer’s
the United Arab Emirates (UAE) began production in 2019. capacity is somewhat more susceptible
outside oil and gas, has signed a Last month EGA signed an to adverse effects of changes in
series of agreements with aluminum agreement with NEO Aluminio Colombia circumstances and economic conditions
maker PT Indonesia Asahan which could lead to the export of EGA than higher-rated issuers.
Aluminium (INALUM) to provide technology for the development of the PT J Resources Nusantara was
technological know-how to upgrade the South American country’s first aluminum established in 2003 under the name PT
Indonesian company’s aluminum smelter production facility. Bara Kutai Energi. Its operations cover
in North Sumatra. the exploration, mining, and processing
The signing was part of Indonesia Pefindo: J Resources of gold. It has a geographically diverse
UAE Week, organized by the two Nusantara’s maturing MTN portfolio of assets across Indonesia
countries’ Embassies to further deepen rated “idA” and Malaysia, specifically in Penjom,
economic ties between the UAE and PEFINDO has affirmed its “idA” rating Malaysia; Seruyung, North Kalimantan;
Indonesia. for PT J Resources Nusantara (JRES)’s and Bakan, Lanut, Pani, Doup,
EGA said in a statement it will provide MTN IV Year 2018 of IDR300 billion Bolangitang, and Bulagidun in North
expertise to upgrade the performance maturing on February 15, 2021. JRES Sulawesi. As of September 30, 2020, it
of the INALUM smelter by retrofitting plans to repay its maturing MTN using had three producing mines, two mines
improvements to its existing technology, the proceed from Shelf Registered Bond in the development stage, and two in the
which was first installed in 1982. I Phase VII Year 2020 of IDR384 billion exploration stage. The Company’s shares
The project, which is expected to which will be issued by its parent company, were 99.9% owned by PT J Resources
take some 18 months to complete, aims PT J Resources Asia Pasifik Tbk. Asia Pasifik Tbk., the largest Indonesian
to increase production at the North Debt security rated idA indicates that listed gold producing company.
Sumatran smelter by 20,000 tons of
aluminum per year. EGA has extensive
experience in upgrading aluminum
smelting technology. The company has
completed a series of similar upgrades
across its sites in Jebel Ali and Al
Taweelah over the past decade.
EGA and INALUM also signed
an extension to a Memorandum of
Understanding on broader cooperation,
which envisages potential cooperation
on the construction of a new aluminum
smelter in Indonesia using EGA’s
proprietary technology.
EGA has developed its own
aluminum smelting technology for more
than 25 years, and has used UAE-
developed technology in all its smelter
expansions since then.
In 2016, EGA became the first
UAE industrial company to license
CA | Boim
its core industrial process technology

agreement to acquire Aeturnum Energy
International Limited’s commodities
trading business.
Aeturnum Energy (AE) is currently
the holder of 19.9 percent shares of
Asiamet. AE will also become the
ultimate controller of WIN through
acquisition of WIN’s shares.
Following the planned IPO, WIN
expects to have sufficient financial
resources to enable the pathway for
development of the BKM Copper Project,
Asiamet said.
Under the deal with WIN, Indokal
CA | Khalsa
will be acquired for a total staged
consideration of US$163.4 million,
which will comprise of $10 million paid
Trinitan signs MOU with leach (STAL) technology, which is in cash on the execution of a binding
Japanese firm claimed by the company as a solution SPA, $40 million paid in cash upon the
IDX-listed PT Trinitan Metals and for the processing of low-grade nickel successful IPO on the IDX and a 22.5%
Minerals Tbk, which is engaged in metal laterite in Indonesia, with efficient shareholding in IDX listed WIN.
and mineral processing, said on Monday investment, but able to produce 99.96 Asiamet will continue to manage
it has signed an MOU with Japan’s percent nickel (LME grade), as well as the KSK CoW project for a period of
Meiwa Corporation to conduct feasibility nickel sulfate (NiSO4) and cobalt sulfate up to 12 months (extendable by mutual
(FS) study for its proposed nickel smelter (CoSO4) battery grade. agreement) following the IPO of PT WIN
project in Central Sulawesi. through a management services contract.
Trinitan said in a statement that WIN in talks with potential Aeturnum’s independent valuers
the FS is already in progress, and is underwriters for planned estimate WIN to have an equity value of
targeted to be completed in March 2021. IDX IPO circa $500 million on a 100% basis on
Trinitan Director Widodo Sucipto said Indonesia-based firm PT. Wasesa IPO, asiamet said.
that following the completion of the FS, Indo Nusa (WIN) is currently in “Following completion of the
the company will carryout the detailed talks with several “highly regarded” transaction Asiamet will have circa
engineering design (DED) with the Indonesian financial institutions to $50 million cash and no debt on its
Japanese firm. underwrite the IPO on the Indonesian balance sheet and retain a sizeable
Trinitan on October 28 held a Stock Exchange (IDX), which is planned 22.5% interest in the KSK CoW through
groundbreaking ceremony for its by the end of first quarter of 2021, UK- its shareholding in WIN along with an
nickel smelter project located at the listed copper-gold junior mining firm 80% interest in the significantly larger
Special Economic Zone in Palu, Central Asiamet Resources Limited reported. Beutong copper gold porphyry project
Sulawesi. Widodo said at the time that As part of IPO strategy, WIN has in located in Aceh. The Company plans
construction of the nickel smelter project October 2020 signed a conditional share to continue working with PT WIN on
is expected to be completed in a year, in purchase agreement (CSPA) to acquire the development of the BKM copper
the hope that it would start operation later Asiamet’s subsidiary Indokal Limited , project, to progress various options for
next year. the 100% owner of the Kalimantan Surya further exploration and development
The company is teaming up with Kencana Contract of Work (KSK CoW), of the Beutong project and assess
PT Bangun Palu Sulawesi Tengah in including the BKM Copper Project, additional growth opportunities that can
the smelter project that will use its located in Central Kalimantan. As part of create long term value for shareholders,”
hydrometallurgy step temperature acid the Transaction, WIN has entered into an Asiamet said.

[MINERALNEWS]
CA | Khalsa
Trinitan seeks BPPT’s nickel or nickel sulfate (NiSO4), and ounces per year, according to IDX-listed
approval for STAL cobalt sulfate (Co504). integrated energy firm PT Indika Energy
technology The company said that it wanted to Tbk. “Based on the feasibility study,
IDX-listed PT Trinitan Metals and gain approval from BPPT for the STAL the initial production volume is about
Minerals Tbk, which is engaged in metal technology, which the claims to be the 100,000 –130,000 ounces,” said Azis
and mineral processing, and its subsidiary solution in processing the country’s huge Armand, Vice President Director & CEO
PT Hydrotech Metal Indnesia (HMI) low grade nickel reserves. of Indika Energy.
had on 16 December signed an MOU Trinitan is developing a nickel Indika Energy currently owns 45.8
and cooperation agreement with the smelter using the STAL technology at the percent shares in the Awak Mas gold
Agency for Technology Assessment and Special Economic Zone in Palu, Central project, operated by PT Masmindo Dwi
Application (BPPT) for technology audit Sulawesi, which the company said is Area, while the remainder is held by
of STAL pilot plant owned by HMI. expected to start operation later next year. ASX-listed Nusantara Resources. Indika
Trinitan said in a statement Friday Trinitan is teaming up with PT has an option to increase the ownership in
that the hydrometallurgy step temperature Bangun Palu Sulawesi Tengah in the Awak Mas to 53.9 percent. Read also:
acid leach (STAL) technology has been smelter project. The Awak Mas gold project is held
proven to have succeeded in converting under a 7th generation Contract of Work
nickel ores from low grade nickel laterite Awak Mas to produce up (CoW) signed with the Government
into pregnant leach solution (PLS) within to130,000 oz of gold per year of Indonesia (GoI) in 1998. The CoW
four hours, which will be processed into The Awak Mas gold project in South covers an area of 14,390 hectares, and
downstream products such as mixed Sulawesi Province is expected to start has gold reserves and resources estimated
hydroxide precipitate (MHP)/mixed production in 2022 or 2023 at initial at 1.5 million ounces and 2.3 million
sulphide precipitate (MSP), or pure production rate of 100,000-130,000 ounces respectively.

LG Energy Solution signs MOU for RI investment
L
G Energy Solution, the battery during their visit to Seoul to sign the but the companies refused to comment on
spinoff from LG Chem, signed a Comprehensive Economic Partnership the matter.
memorandum of understanding Agreement between the two countries. “LG Energy Solution has been
(MOU) with the Indonesian LG Energy Solution confirmed exploring investment opportunities in
government investment authority Friday the signing of the MOU, but refused Indonesia for a while, with a plan to
for investments into the Southeast Asian to disclose any details, saying it was engage in multiple processes of battery
country. “a non-binding MOU regarding local making through joint ventures in the
According to the industry ministry investment” and specifics had yet to be country,” a source said. “The MOU is
and LG Energy Solution, the electric confirmed. showing that the company and the country
vehicle (EV) battery maker held a According to officials familiar with have reached common ground from a
closed-door signing ceremony for the the matter, however, the MOU is about broad perspective, but are still narrowing
MOU at the Lotte Hotel in Seoul. The launching a package of battery-related their differences over the details.”
ceremony was attended by LG Energy businesses in Indonesia, ranging from Indonesia has been frequently
Solution President Kim Jong-hyun, mining raw materials to manufacturing mentioned as an investment destination
Indonesian Investment Coordinating battery cells. LG Energy Solution will for battery and electric vehicle firms due
Board Chairman Bahlil Lahadalia and lead a consortium comprised of both to the country’s abundant resources for
Minister of Trade, Industry and Energy Korean and Indonesian companies to battery materials. The country, which has
Sung Yun-mo, news portal koreatimes. do this. The alleged total value of the the largest nickel reserves in the world,
co.kr reported. projects will likely reach the trillion-won banned all nickel exports in January to
The news portal quoted sources level, the report said. have more processed in the country.
as saying the MOU was signed after Companies including LG Nickel is one of the most important
Indonesian ministers’ expressed strong International and POSCO were materials in manufacturing batteries.
hopes of signing a deal with the company mentioned as stakeholders in the projects, Due to the country’s importance,
not only LG Chem but also a number
of global giants have tapped into the
country. Overseas news outlets reported
that Tesla will send a delegation to
Indonesia next month to discuss a
potential investment in the country, and
CATL, the biggest rival of LG Energy
Solution, plans to invest $5 billion in a
lithium battery plant there.
Though not included in Friday’s
MOU, sources said a joint venture
between LG Energy Solution and
Hyundai Motor is under way, with an
outcome expected next month.
Currently, Hyundai Motor is building
a vehicle plant capable of manufacturing
up to 250,000 vehicles ― including EVs
― annually in Indonesia, with a plan to
launch commercial operations at the end
of next year. For a stable battery supply to
the plant, the two sides reportedly agreed
on setting up a joint venture and are now
fine tuning details of the project.

[MINERALNEWS]
Sihayo reports additional encouraging assay

results from drilling at Hutabargot Julu
A
SX-listed gold mining km gold-soil geochemical anomaly that been received for a further three holes,
firm Sihayo Gold has been largely untested by drilling to showing gold mineralisation in all three
Limited updates drilling date. Previous drilling done by Sihayo at holes, it added.
activities at the Hutabargot Hutabargot Julu during 2010-2013 was The Company has engaged Intrepid
Julu exploration prospect located focussed mainly on the southern edge of Geophysics N/L to do a 3D inversion
approximately 6 km southeast of the this anomaly. analysis of high resolution airborne
Sihayo Starter Project in the northern The aim of the current reconnaissance magnetics data previously acquired over
block of the PT Sorikmas Mining Contract program is to test the potential for a large Hutabargot Julu and the entire CoW
of Work, North Sumatra. gold resource similar to the Martabe area in 2012. This will greatly assist
Drilling at Hutabargot Julu gold-silver deposit, located about 80 km with interpreting the potential depth
commenced in early October using two northwest of the CoW. Martabe and the and extent of the mineralised system at
man-portable drilling rigs owned and CoW, which includes the Hutabargot Hutabargot Julu and, combined with new
operated by PT Indodrill Indonesia. A Julu gold-silver target, all lie within the geological, structural and geochemical
third man-portable drilling rig recently same highly prospective mineral belt of data generated from the current drilling
arrived at site and will help accelerate the North Sumatra. program, may assist in highlighting the
progress of the drilling program. A total Gold assay results from the first hole major controlling structures for targeting
of 9 holes (1,818 m) has been completed in the reconnaissance drilling program, higher grade mineralisation in the current
of the 22- hole (5,500 m) diamond HUTDD057, were reported last month and follow- up drilling programs.
drilling program to date. and showed very encouraging intercepts, Additional assay results from other
The planned drill holes are located the company said. holes completed in the program to-date
across the northern part of a 3.5 km x 3.0 Further gold assay results have now are expected to be received in the coming
weeks. Drilling continues with three rigs
and this initial program is expected to be
completed in early Q1 2021.
A more targeted follow up program
to test for and define identified zones
of mineralisation is envisaged once full
results from the reconnaissance program
have been analysed and interpreted.
Sihayo’s Executive Chairman, Colin
Moorhead commented: “The results from
the reconnaissance drilling program at
Hutabargot Julu continue to confirm our
exploration model for the prospect. We
firmly believe there is potential for bulk-
tonnage disseminated gold plus discrete
higher grade structurally controlled gold
vein targets within this large prospect area.
We look forward to receiving further
assay results over the coming months
CA | Khalsa
and will continue to update the market

accordingly.”

CA | Khalsa
Baru Gold appoints Sangihe Mine Manager
C
anada-listed junior gold and Mineral Resources (MEMR). This is immediately start construction once the
mining firm Baru Gold a statutory position required by all mine production licence upgrade is received.”
Corporation announced operations whether in the exploration Baru is planning to move ahead
the appointment of Fatchil or production stage. The duties of the toward commencement of production and
Amal as Mine Manager (KepalaTeknik KTT are to ensure compliance with cash flow from gold production on the
Tambang/KTT) for its Sangihe gold all legislation related to safety, health, Sangihe project in the first half of 2021.
project in North Sulawesi. environmental impact, and conservation The construction of heap leach will
For more than 28 years Amal has of mineral resources. The KTT is also start with gold pour within six months
had senior technical and management responsible for regular reporting of from breaking ground with stage one
roles in coal, gold and copper mining, activities and operations to the MEMR. production of 12 months at 1,000oz gold
and mine infrastructure construction Amal has previously been KTT on a per month when the production plant is
operations throughout Indonesia. He number of other mining projects. fully operational, it said earlier.
was involved in projects including Indo Baru Gold CEO, Terry Filbert, The Sangihe gold-copper project
Muro Kencana, Batutua Tembaga Raya, commented, “We welcome Amal to is located on the island of Sangihe off
Nusa Halmahera Mineral, and Nuansa our team and congratulate him on being the northern coast of Sulawesi and has
Cipta Coal Investment. His role as KTT approved as our KTT for the Sangihe an existing National Instrument 43-101
at the Wetar copper leaching project project. His experience in both mining inferred mineral resource of 114,700
whose island location and remoteness is and infrastructure construction in remote indicated and 105,000 inferred ounces of
very similar to the Sangihe Project, the locations will ensure our project is gold. The Company’s 70-percent interest
company said. delivered as efficiently and safely as in the Sangihe-mineral-tenement contract
Amal’s appointment as KTT has also possible. This is another step the Company of work is held through PT. Tambang
been approved by the Ministry of Energy has taken to position itself to be able to Mas Sangihe.

[MINERALNEWS]
margins both for miners and smelter

operators so as to help create conducive
investment climate in the domestic
smelter industry.
Secretary General of the Indonesia
Nickel Miners Association (APNI)
Mediy Katrin Lengkey acknowledged
that the HPM has started to be
implemented in domestic nickel ore
transaction. Nickel smelter operators
have previously appealed to the
government to allow them for gradual
implementation of the HPM policy
to help prevent soaring cost as their
products are also facing anti-dumping
duties in a number of export markets.
Harum ups stake at

Nickel Mines
IDX-listed mining firm PT. Harum
Energy Tbk announced on Wednesday
that it has on December 15, 2020,
acquired 39 million shares of ASX-listed
nickel firm Nickel Mines Limited with
the purchase price of A$36.74 million.
“As of December 15, 2020 the
CA | Khalsa
Company owned 4.88% of total issued

capital in Nickel Mines Limited,” the
company said.
Most smelters have applied ha started to be implemented (by the Prior to the acquisition, Harum had
HPM in nickel transaction: smelter operators),” he said, adding that 3.22 percent shares at Nickel Mines.
Official the government will warn recalcitrant Nickel Mines holds 60 percent
Most nickel smelter operators have companies three times before finally economic interests in the Hengjaya
applied the government-sanctioned HPM revoking their licenses. Nickel and Ranger Nickel projects,
reference price in the purchase of nickel Minister of Energy and Mineral both of which operate 2 line Rotary
ores from miners, according to a senior Resources Arifin Tasrif issued in April of Kiln Electric Furnace (RKEF) plants
government official. this year new Ministerial Regulation No producing NPI within the Indonesia
Director of Mineral Development and 11/2020, which among others requires Morowali Industrial Park (IMIP), Central
Management at the Ministry of Energy nickel ore transaction to use HPM as Sulawesi Province. Nickel Mines is
and Mineral Resources, Yunus Saefulhak price benchmark. The policy is seen seeking to increase its stake in the two
said that 65 of the total 73 companies to support nickel miners, who have nickel projects to 80 percent.
holding the IUP OP/IUP OPK mining complained that they could not sell their Nickel Mines also holds an 80
business licenses have utilized the HPM ores to smelter operators at profit after percent economic interest in the Hengjaya
in their nickel ore transactions. the government banned nickel ore export Mineralindo Nickel Mine (Hengjaya
He urged the remaining firms to early this year. Mine), a large tonnage, high-grade
follow suit, or risk their licenses revoked Yunus, however, said that the HPM saprolite deposit located in the Morowali
by the government. “So, the HPM policy is meant to provide healthy Regency of Central Sulawesi.

BASF, Eramet team up to develop nickel, cobalt
refining complex in N. Maluku
G
lobal chemical firm statement released on Tuesday said. “Securing access to raw materials,
BASF and French global The HPAL plant will process locally especially nickel, is a critical component
mining and metallurgical secured mining ore from the Weda Bay to support the strong growth in the global
group Eramet have signed deposit to produce a nickel and cobalt electric vehicle value chain. The share
an agreement to jointly assess the intermediate. Since the acquisition of of high nickel CAM is rising to meet
development of a state-of-the-art nickel Weda Bay in 2006, Eramet carried out the demand for higher energy density
and cobalt hydrometallurgical refining extensive geological work and confirmed batteries and reduce overall battery
complex. the potential of this world-class deposit costs, and Weda Bay’s resources rank
Such a development would include whose mining operations started at the among the most competitive globally
a High-Pressure Acid Leaching (HPAL) end of 2019. for addressing this demand. The planned
plant and a Base Metal Refinery (BMR). The BMR will supply nickel and development will provide BASF access
The HPAL would be located in Weda cobalt to produce precursor cathode to an additional secure source of 42,000
Bay, North Maluku, while the location active materials (PCAM) and then metric tons of nickel and 5,000 metric
of the BMR will be determined during cathode active materials (CAM) for tons of cobalt annually from mines
the feasibility study, the companies’ joint lithium-ion batteries in electric vehicles. operating according to internationally
recognized sustainability standards,” the
release said.
The project targets a start-up of
the HPAL and BMR facilities in the
mid-2020s and will commence in the
first phase feasibility study with limited
funding.
“With Eramet, we have a responsible
and experienced partner to supply raw
materials for our battery materials
production,” said Dr. Peter Schuhmacher,
President, Catalysts division at BASF.
“As a global supplier, BASF offers
a full solution from metals to innovative
CAM products in support of our battery
materials customers around the world.”
Christel Bories, Chairman and CEO
of Eramet commented: “With high
potential deposits and strong metallurgy
know-how, Eramet is well positioned
to supply critical metals for energy
transition. A key pillar of our strategy
is to grow in this area. Partnering with
BASF is a unique opportunity in line
with our ambition to provide a solid
CA | Khalsa
and sustainable supply for the batteries

industry.”

[MINERALNEWS]
Nickel miners developing HPAL

smelters to pay lower royalty
T
he government will ease the such as a lower royalty (obligation) for the further processed into raw material for
royalty obligation of integrated ores, compared to the royalty set in PP 81,” production of electric vehicle battery.
nickel miners developing Yunus said in a webinar. Yunus also mentioned that HPAL
smelters utilizing the high Under Government Regulation (PP) smelter developers with integrated
pressure acid leach (HPAL) technology No 81/2019, nickel ore is subject to 10 operation will be granted life of mine
that absorbs nickel ores with grade lower percent royalty. However, Yunus did not mining permit. HPAL smelter developers
than 1.8 percent. disclose the lower royalty tariff. will also be provided with other fiscal
Yunus Saefulhak, Director of Mineral The government said there are incentives from the Ministry of Finance,
Development at Directorate General of currently five HPAL smelter projects such as tax holiday and lower import
Mineral and Coal, said that the lower under construction. IDX-listed duties for capital goods.
royalty tariff is part of government integrated nickel mining firm PT Vale In addition, Yunus stated that the
planned incentives to help accelerate the Indonesia Tbk said previously it plans government is discussing about the
development of HPAL smelters in the to start construction next year of an economical and technical viability of
country and absorb lower grade nickel ores. HPAL smelter in Pomalaa, Southeast existing nickel smelters in absorbing low
“Incentives will be provided for (nickel Sulawesi Province, which will produce grade nickel ores. “It may be a regulation
mining) companies that develop HPAL mixed sulphide precipitate (MSP), that obliges existing smelters to absorb
smelters and absorb low grade nickel ore, an intermediate product that can be 1.5-1.7 percent nickel ores,” he said.

in Indonesia. “I recently met them in
Yunan, they’re committed to also bring
the EV plants (to Indonesia). The target
is in 2024 they will invest around US$5
billion,” he said.
Indonesia, which holds the world’s
largest nickel reserves, is seeking to
invite global EV supply chain industry
leaders to invest in the country. The
Investment Coordinating Board said in
June that LG Chem was considering a
$9.8 billion investment in an electric
vehicle battery factory integrated with
a smelter.
Last week, the Indonesian
government said U.S. automaker Tesla
will send a delegation to Indonesia next
month to discuss potential investment in
a supply chain for its electric vehicles.
Timah inaugurates floating

solar power plant at ex
mine-site
IDX-listed tin giant PT Timah
Tbk inaugurated on Friday a floating
solar power plant at its ex-mine site
in Selinsing Village, Belitung Timur
Regency, Bangka Belitung Islands
CA | Khalsa
Province.
“We appreciate the commitment
of PT Timah Tbk in maximizing (the
RI’s lithium battery plant to 60 percent of the nickel supplied by use of) the former mine site to increase
start production in 2024 Antam into EV battery in Indonesia. “60 energy supply and the welfare of the local
A lithium battery plant in Indonesia to percent of the nickel they obtained must people,” said Director General of Mineral
be developed by China’s Contemporary be processed into battery in Indonesia. and Coal, Ridwan Djamaluddin at the
Amperex Technology Ltd (CATL) This is our demand. So, we don’t want inauguration ceremony as quoted in a
in partnership with Indonesia’s state- them to get nickel from us but processed statement issued by the directorate. No
controlled miner PT Aneka Tambang it overseas,” he said. further details were provided about the
Tbk (Antam) is targeted to start Antam and CATL signed on 9 new floating solar power plant.
production in 2024. November a principal agreement for Ridwan also inaugurated a fishing
This was revealed by Septian H. joint development of a lithium battery villa at the 17-ha ex-mine site which has
Seto, a Deputy at the Office of the plant in Indonesia as the country is been turned into an agro-tourism area.
Coordinating Minister for Maritime seeking to become a global hub of the The local government welcomes
Affairs and Investment, at a webinar EV supply chain. Timah’s efforts to develop the ex-mine
recently Elsewhere, Septian said that his office site into a tourism destination as it would
He added that the Indonesian side had also met with Chinese car makers help improve the economic life of the
has required CATL to process at least to develop an EV manufacturing plant local people.

OPINION
By Hendra Sinadia
REVIEW 2020 AND OUTLOOK 2021
M
ining industry is additional operational costs while Law No. 3 of 2020 on the Amendment
highly vulnerable struglling to cope with the weakening of the Law No. 4 of 2009 on Mineral and
to the external risks demand impacted as result of the trade Coal Mining provides long-term certainty
particularly volatility war. The pandemic hits the industry not only for holder of Coal Contract
of the commodity prices and policy on the demand side which triggers of Work (CcoW) but also for Contract
risks. In the early 2020, virus SARS commodity prices downturn. of Work (CoW) and Mining Business
Cov-2 (Covid-19) almost shutted down Big miners both mineral and coal Permit holders (IUP). In addition, the
the world economy after the World producers perform relatively well in issuance of the Law No. 11 of 2020
Health Organization (WHO) declared terms of keeping the production plan on Job Creation (Omnibus Law) also
the outbreak as the Global Pandemic. intact amidst the pandemic. Despite the exemplifies the commitment of the Joko
Most of the world economy have weakening demand which force most Widodo – Ma’ruf Amin’s administration
entered into the recession which worse miners especially coal producers in to boost the investment climate.
than the 2008 financial crisis. That is the survival mode, the tax and non-tax Perhaps one of the best achievements
why TIME magazine labels the 2020 contribution of the mineral and coal in 2020 by the mining industry is the
is the worst year ever in the cover of sector is crucial to the nation. Miners selection of four coal companies as the
its weekly publication. Some of the have been doing their utmost to maintain recipient of the gold rating (the highest
mineral commodities, except gold, have the workforce in order to support rating) in the Proper LH (Environmental
seen their prices hits its lowest level in the national and regional economic Rating conducted by the Ministry of
years. Despite all the negativity, there recovery. Coal producers have been Environmental and Forestry). Of the
are some positive news in regards to working around the clock to ensure the 36 recipients of the gold ratings, 30
regulatory aspect as the government and domestic supply not disturbed. are from energy and mining industries
the parliament enacted the New Mining The pandemic does not only including geothermal, power generation,
Law and the Job Creation Law amidst impacting the demand but affecting coal, and oil and gas. Only 6 companies
the pandemic. This gives optimism for miners’s investment plan. According from industries outside of energy and
the industry to face the 2021 where mosf to the data compiled by the Ministry mining industry. This exemplifies the
of the world economy is in the recovery of Energy and Mineral Resources, commitment of energy and mining
mood. However there are still huge investment realization as of October companies in implementing their highest
challenges and uncertainties in the new 2020 fell to more than 60% compared environmental management standard
year ahead. to the 2019 figure. Miners are forced even in the perhaps the most difficult
to scale back their investment plan year that the industry has experienced.
Review 2020 which hampered by the logistical supply Unfortunately this encouraging news
Pandemic is perhaps the most problems. PT Freeport Indonesia and PT have received only small media coverage.
single important factor that impacted Amman Mineral Nusa Tenggara have
the mining industry severely in 2020. notified the government that their copper Outlook 2021
During the pandemic, most of mining smelter projects were affected so that it In the demand side, the recovery of
activities are in relatively normal is difficult for each project to meet the the world economy provides positive
condition despite companies enforcing dealine as initially planned. outlook for miners in anticipating the
strict physical distancing measures Inspite all the negativity, there were year ahead. China economy is having
to prevent the outbreak. In doing so, some positive news particularly on the the fastest growth among the G-20
companies are burdened with more regulatory aspect. The enactment of the countries. The world second biggest

Executive director of Indonesian Coal Mining Association (APBI-ICMA),
member of the Energy and Mineral Resources Committee of the Indonesian Employers
Association (APINDO), vice chairman and co-founder of Indonesian Mining Association,
member of the Board of PERHAPI. The opinions expressed are his personal view.
economy is performing well with its In the policy side, the mining industry requires the coal miners to invest in
purchase manager index records the has been awaiting for the finalization of coal development or coal utilization
highest level in years. On the other implementing regulations of the Law project as part of the evaluation of their
hand, the US and European countries No. 3 of 2020. The government is to contract extention proposals. Under the
are still struggling to cope with the issue 3 government regulation (PP) on Law No. 3 of 2020, coal development
spread of the corona virus including the the business activity of mineral and coal consisting of coal gasification and coal
possibility of the new strain as emerged industry, reclamation and post-mining liquefaction among others. Meanwhile,
in the United Kingdom. The uncertainty and mining area. Although the Law coal utilization is related to the building
over the Brexit deal with the European mandates the implementing regulations of mine-mouth power plant. Details
Union is still looming. Meanwhile the should be completed at the latest 1 year on the coal downstreaming obligation
upcoming new leader of the United after the enactment of the Law, which is should be regulated in the incoming GR
States although is highly welcomed June 2021 but the government confirms on the Law No. 3 of 2020.
but it projected not too give significant the regulations should be ready within 6 For nickel producers, the potential
breakthrough in 2021. months. So far the industry has limited demand electric vehicles provides
Coal demand is expected to grow access to study the draft regulations as positive development on the investment
again in 2021 thanks to the recovery of the government has invited industry on the nickel processing facilities.
the Chinese economy. Indonesian coal and professional associations for once The proactive measures taken by the
miners expect to cultivate to the recently meeting only, and yet it without a Government to impose raw material
signed memorandum of understanding complete draft. export ban and regulate the nickel
(MoU) signed by APBI-ICMA and its For coal miners, especially price should be appreciated. However
counterpart China Coal Transportation CcoW holders, the concern over the the government should also consider
& Distribution Association (CCTDA) possibility of the royalty tariff hikes is to provide non-fiscal incentives and
witnessed by representatives from the still lingering as the government not utmost support to make development
two countries. In the MoU which valid yet finalizing the draft of government of copper smelter economically viable.
for three years, the two parties agreed to regulation on the tax treatment for coal Keeping mineral producers to sustain
enhance their cooperation to boost coal companies. Technically the regulation their investment to support the recovery
export from Indonesia which is targeted should have been issued at the latest of national and regional economy is
to reach 200 million tonne. on December the 1st 2020 as the legal very important.
As the World’s biggest coal basis for the tax obligation of the holder In terms of external economic
importer, China’s role remains of Special Mining Business Permit factor, miners expect to enter into
significant in affecting the commodity (IUPK) Production Operation (ex-CcoW recovery mode in the 2021. Given
price. The country represents more than holder) . There was a proposal from the the recovery of the world economy in
quarter of the total global seaborne Ministry of Finance to impose the new particular with the arrival of vaccines,
thermal coal market. The recent coal royalty tariff of 24% to be applicable to such optimism is highly understandble.
import restriction imposed by China the IUPK OP holder, which is extremely However uncertainty factor remains
on Australian coal raises concern over higher compared to the existing 13.5% including geopolitical tension. In the
uncertainty in global coal demand. Such tariff. Our existing tax scheme is seen national level, investment friendly
issue could provide an opportunity for as not attractive and not competitive policy and regulation would be the
some of Indonesian coal exporters to compared to many other mining most decisive factors that could shape
feed the growing demand in China ahead producing countries. the future of the national mineral and
of the Chinese new year. The increase of The 1st generation of the CcoW coal industry. So long 2020, the year
the coal price is partly due to the rising holders also are facing though business that perhaps no one won’t miss. And let
of demand from China as its domestic challenges in investing in the coal us welcome 2021 with huge optimism
coal prices continue to rise. downstreaming project. The government for our better future.

OPINION
Kirana D. Sastrawijaya | Senior Partner of UMBRA
Dinda Khamasasyiah | Associate of UMBRA
Angela Vania Rustandi | Associate of UMBRA
Besafina Hanan Amarany | Legal Assistant of UMBRA
Battery electric vehicle (BEV) development to

welcome electricity-based vehicle era in indonesia
Background by 2025. It comprises several vital of approaches to respond to the
Battery-powered Electric Vehicles commitments. They are to (i) develop stretching in the market, among others,
(BEV) have become one of the priorities EV or hybrid electric vehicles (HEV) to establish an acceleration team of EV
of President Joko Widodo’s leadership. in 2025 consisting of 2.200 units battery development by State-Owned
Several strategic reasons make BEV 4-wheeled vehicles and 2.1 million Enterprises (SOE). The SOE Ministry
plays an important role in the nation’s units 2-wheeled vehicles, (ii) gradually ordered SOEs to establish a holding
future such as low or zero emissions, develop infrastructure of General company, namely Indonesian Battery
decreasing pollution level, reducing Electric Charging Stations (Stasiun Holding (IBH)10 . They will form a
Indonesia’s dependence on imported Pengisian Listrik Umum/SPLU)5 for consortium with LG Energy Solution
fuel while reducing subsidies, and up to 1.000 units by 2025, and (iii) from South Korea to develop a battery
finally, Indonesia’s long term goal to formulate regulations to accelerate the factory with an estimated cost of
become the top producer and exporter use of EV.6 approximately Rp130 trillion (approx.
of BEV.1 Moreover, according to There have been significant US$9,21 bn).11 In the infrastructure
the Ministry of Energy and Mineral movements in Indonesia ‘s BEV sector, per October 2020, Indonesia
Resources (MEMR), Indonesia has market. Recently, big motor already had 62 electric stations
the largest nickel reserves in the world companies have made inroads in consisting of General Electric Vehicle
in 2019, and it is a crucial component developing BEV in Indonesia. As a Charging Station (Stasiun Pengisian
in making lithium batteries.2 The Japanese automotive giant, Toyota Kendaraan Listrik Umum/SPKLU)
Geological Agency of Indonesia in has invested $2 billion to develop ten and Public Electric Vehicle Battery
July 2020 also reports that Indonesia’s types of EVs in Indonesia to achieve Replacement Station (Stasiun Penukaran
estimated nickel resources are 11,887 a critical global hub for EV exports Baterai Kendaraan Listrik Umum/
million tonnes and reserves are more in Southeast Asia.7 Another major SPBKLU) owned by PT PLN (Persero)
than 4,346 million tonnes.3 player, Hyundai Motor from South (PLN), Agency for the Assessment
Since 2017, the Government Korea, has also committed $1.55 and Application of Technology (Badan
of Indonesia (GoI) has been keen billion in investment to manufacture Pengkajian dan Penerapan Teknologi/
on developing BEV and related EVs that soon start manufacturing in BPPT), PT Pertamina (Persero), and
infrastructures. This is reflected in Indonesia.8 US-based Tesla has agreed other business entities.12 The GoI plans
the General Plans of National Energy to explore potential investment in EV to have an estimation of 2.465 electric
(Rencana Umum Energi Nasional/ and space launch station next month in stations in 2025.13
RUEN)4 that sets out the target of Indonesia, as confirmed by the GoI.9 In the transportation sector, the GoI
Electric Vehicles (EV) in Indonesia The GoI has also taken a multitude also actively pushes motor producers
1 https://bumn.go.id/media/news/damri-lakukan-retrofit-bus-listrik-untuk-transportasi-umum#:~:text=Terdapat%20beberapa%20alasan%20strategis%20yang,
mengurangi%20subsidinya%2C%20dan%20yang%20terakhir.
2 https://www.esdm.go.id/id/media-center/arsip-berita/hilirisasi-nikel-ciptakan-nilai-tambah-dan-daya-tahan-ekonomi.
3 Ibid.
4 Presidential Regulation No. 22 of 2017 on General Plans of National Energy (Rencana Umum Energi Nasional/RUEN) (PR 22/2017).
5 Different term under RUEN and PR 55/2019.
6 Attachment 2 of PR 22/2017.
7 https://jakartaglobe.id/business/elon-musk-to-look-into-potential-tesla-spacex-investments-in-indonesia.
8 Ibid.

and operators to convert fuel-based Key provisions on BEV development domestic manufacturing requirements
vehicles to EVs. They invited Astra in Indonesia to testing, conversion of fuel-powered
Prospect Motor to modify their official In response to the aggressive motorcycles to BEV, and environmental
workshops to have electric-conversion market, President Joko Widodo issued protection from the battery wastes.
support so their customers can convert Presidential Regulation No. 55 of 2019 Meanwhile, BEV infrastructures are
their existing motorcycles to electric regarding Acceleration of the Battery- primarily regulated in PR 55/2019
motorcycles.14 SOE's Djawatan Powered Electric Motor Vehicles and Minister of Energy and Mineral
Angkoetan Motor Repoeblik Indonesia for Road Transportation Program on Resources Regulation No. 13 of 2020
(DAMRI), as one of the major bus 12 August 2019 (PR 55/2019). PR (MEMR 13/2020).
operators in Indonesia, also introduced 55/2019 jumpstarted BEV development
a retrofit program to electrify their in Indonesia. Since then, a variety The manufacture of BEVs
existing buses. They target 20% of of minister regulations have been PR 55/2019 acknowledges two
their buses will be electrified by 2025.15 promulgated to support this acceleration industries of BEV, which are industries
Several regional governments, including program. for BEV itself and for BEV components.
Bali, Jakarta, West Nusa Tenggara have Most of the regulations can Both industries must be established
envisioned the adoption of BEV by generally be divided into two topics: based on Indonesian law and operate
issuing regulations concerning BEV. the BEV itself and BEV infrastructures. within Indonesia. They also must
From the private sector, it was also Regulations regarding BEV ranging secure an industrial business license
reported that Grab is ready to operate from types of BEV industries, local to assemble or produce BEV or BEV's
more than 5,000 EV in Indonesia.16 content requirement, importation, main and supporting components.
9 Ibid.
10 The four SOEs, namely Mining Industry Indonesia, PT. Aneka Tambang Tbk, PT. Pertamina and PT. Perusahaan Listrik Negara (PLN).
See: https://ekonomi.bisnis.com/read/20201209/44/1328773/ini-bocoran-pembagian-saham-4-bumn-di-indonesia-battery-holding.
11 http://www.businesskorea.co.kr/news/articleView.html?idxno=56587.
12 https://www.cnbcindonesia.com/news/20201005083624-4-191830/wah-ternyata-ri-punya-62-stasiun-charging-kendaraan-listrik.
13 Ibid.
14 https://www.cnnindonesia.com/teknologi/20200210140607-384-473259/pemerintah-ajak-apm-soal-konversi-motor-bensin-ke-listrik.
15 https://bumn.go.id/media/news/damri-lakukan-retrofit-bus-listrik-untuk-transportasi-umum.
16 https://voi.id/en/teknologi/18733/5000-grab-electric-vehicle-fleets-ready-to-operate-in-indonesia

OPINION
According to Ministry of Industry MEMR 13/2020 as a response to that that at this moment only PLN can carry
Regulation No. 28 of 2020 (MoI urgency. Under MEMR13/2020, the the business, or at least, a cooperation
28/2020), BEV industries must carry electricity charging infrastructure for with PLN will be needed.
out domestic manufacturing and BEV comprises two, i.e., (a) recharging
to prioritize domestic production. facility and (b) battery replacement Private involvement in charging
Importation is only allowed when facility. The recharging facility is the business through some business
domestic production is not capable electrical energy charging facility for schemes
of producing BEV and BEV's BEV, while the battery replacement MEMR 13/2020 also provides
components. Industries need to obtain facility is the place for replacing the other business options for private
an approval letter from Ministry battery of BEV. entities to participate by not being an
of Industry (MoI) to import. There The recharging activity can be IUPTL holder. The business scheme
are also local content requirements carried out in (a) a private electrical used in running the charging business
for two and/or three-wheeled BEVs installation and (b) SPKLU, while the for BEV can be in the form where (a)
and four our more wheeled BEVs, battery replacing activity can be carried SPKLU Business Entity is the holder
which progressively increase over out in an SPBKLU. of integrated IUPTL (in this case, PLN)
the course of at least 11 years (2019- and where (b) SPKLU Business Entity
2030 and onwards).17 BEVs also have IUPTL as the license to sell electricity is the holder of IUPTL for sales (in
to meet technical requirements and for public this case, PLN). We set out below the
roadworthiness.18 Charging facilities in the form table showing each of the schemes.
Further, the GoI provides an of SPKLU are provided by SPKLU The blue highlighted column indicates
opportunity for fuel-powered business entities (SPKLU Business the opportunity for private entities to
motorcycles to convert to battery- Entity) for owners of BEVs. SPKLU participate.
powered motorcycles. Conversion can Business Entity must be either (a) a
only be done in a conversion certified holder of integrated Electric Power Battery replacement business
workshop and said motorcycles must Supply Business License/Izin Usaha Unlike charging facilities, the battery
also meet technical requirements and Penyediaan Tenaga Listrik terintegrasi replacement facility is provided by the
roadworthiness after converting.19 Since (integrated IUPTL) or (b) a holder of SPBKLU business entity (SPBKLU
battery waste from BEV has adverse Electric Power Supply Business License Business Entity) for BEV owners
effects on the environment, institutions, for sales/Izin Usaha Penyediaan Tenaga through battery leasing. SPBKLU
BEV industries, and/or BEV component Listrik penjualan (IUPTL for sales), that Business Entity does not require IUPTL
industries must have BEV battery waste owns a Business Area (Wilayah Usaha) but must possess a business license in
management permits if they want to to carry out electricity sales in SPKLU. accordance with the provisions of laws
recycle and/or manage BEV batteries.20 A private electrical installation used for and regulations The business scheme
electricity charging does not require an used in carrying out a battery lease for
Infrastructures for charging the BEVs IUPTL. BEV can be as follows.
The growth of the BEV demand Basically, the whole Indonesian area For the first time, the provision
cannot be left alone. It, indeed, must be is the Business Area of PLN, unless of electricity charging infrastructure
supported with a good infrastructure. otherwise decided by the GoI. MEMR for BEVs is carried out through the
One of the most important 13/2020 expressly states that only those assignment of PT PLN. In carrying out
infrastructures is the electricity charging that have Business Area can carry out the assignment, PT PLN as SPKLU
infrastructure for BEVs. The GoI issued SPKLU business activities. It implies Business Entity and SPBKLU Business
17 See: Article 8 PR 55/2019 and Article 16-28 MoI 27/2020.

18 Article 29 PR 55/2019. For more detailed information regarding the technical requirements and road worthiness tests, see: MoT 44/2020.
19 Article 2, 4, and 8 Ministry of Transportation Regulation No. 65 of 2020 regarding Conversion of Fuel-Powered Motorcycles to Battery-Powered Motorcycles.
20 Article 32 PR 55/2019.
21 http://ilmate.kemenperin.go.id/berita-industri/informasi-industri/image/percepatan-program-battery-electric-vehicle-1.
22 Article 17 PR 55/2019.
23 Article 19 paragraph 1 PR 55/2019.

Entity must compile a roadmap for the electrical installation owners, holders institutions, public transportation
provision of SPKLU and SPBKLU of IUPTL for sales, and an SPBKLU companies, and individuals who
infrastructures by 7 February 2021. Business Entity applying for a new help advance BEV development in
connection or change in electric power Indonesia.22 A variety of fiscal incentives
Acceleration program for BEV to the holders of integrated IUPTL may be given, such as incentives on
development will be granted with facilitation. The import duties, luxury sales tax, SPKLU
Roadmaps, facilitations, and facilitation will be in the form of (a) equipment manufacturing, financing
incentives are provided in order to connection fee and/or (b) electricity support for SPKLU development, and
accelerate BEV development. MoI has subscription guarantee. The holders many more.23 There are also several
created a roadmap for the development of integrated IUPTL must exempt the non-fiscal incentives such as exemption
of the national motor vehicle industries minimum account payment obligation from restrictions of certain road usage.24
through MoI 27/2020, which lays out for the first 2 (two) years to (a) the Particularly for BEV infrastructures,
a timeframe for BEV and charging owner of a private electricity installation two teams were formed for the BEV
stations development. MEMR 13/2020 used for the electricity charging of acceleration program. A coordination
also mandates PLN to develop a public transportation, (b) SPKLU team for the BEV acceleration program
roadmap for SPKLU and SPBKLU, Business Entity, or (c) SPBKLU for road transportations was formed
which is still in progress. The roadmap Business Entity. under PR 55/2019 and headed by
expects an investment of 4,2 billion IDR Further, PR 55/2019 authorizes Coordinating Ministry for Maritime
for SPKLU and 885 billion IDR for central and local government to and Investment Affairs.25 Its tasks
SPBKLU by 2025.21 provide fiscal and non-fiscal incentives are to coordinate, create action plans,
Under MEMR 13/2020, private to industries, universities, research mitigate challenges, and supervise

27 State-Owned Enterprise Minister Decree No. SK-28/MBU/01/2020 regarding Establishment of Team for Acceleration of State-Owned Enterprises’ EV Battery Development.
28 Johannes Lauer and Ingo Liefner, State-Led Innovation at the City Level: Policy Measures to Promote New Energy Vehicles in Shenzhen, China, Geographical Review
109(3) (July 2019), p. 446-449.
29 Article 12 paragraph 1 letter b MEMR 13/2020 requires SPKLU to have a special parking space.
30 PLN, Roadmap for the Development of Electric Vehicle Infrastructures 2020-2024, September 2020, https://gatrik.esdm.go.id/assets/uploads/download_index/files/
ab04d-road-map-pengembangan-infrastruktur-kendaraan-listrik-pln-.pdf.

OPINION
the BEV acceleration program.26 A charging facilities require a relatively implementing regulations of Omnibus
team for Acceleration of State-Owned' large space for parking space.29 Not Law have not been promulgated, how
Enterprises' EV Battery Development only do facilities need sufficient land, many changes the licensing procedures
aiming to optimize the integration of but they also need to be placed in would require are still up in the air.
state-owned enterprises' resources and strategic locations in a large number to Although some challenges still
increase coordination between state- beat the growing number of BEV that remain regarding the implementation
owned enterprises with members such as needs charging. This might be hard for of the regulations, especially licensing,
PLN, Pertamina, and ANTAM was also populated cities such as Jakarta, which that the GoI needs to address to
formed.27 is one of the main targets for BEV ensure a smooth acceleration of BEV
development.30 development properly, the Indonesian
Closing • feasibility of business entities to market, regulations, and various
The GoI is on the right track to participate in developing SPKLU. stakeholders have shown a positive
welcome BEVs demand in Indonesia. MEMR 13/2020 stipulates that only response toward BEV development in
Some legal challenges may arise, which business entities who hold integrated Indonesia. This hopefully will provide a
require rigorous scrutiny from the GoI IUPTL or IUPTL for sales and own a good stimulus for future development of
to ensure smooth BEV development, Business Area can carry out electricity the industry in Indonesia.
among other things: sales in an SPKLU.31 In practice, it is
• seamless coordination within the tough for a business entity to obtain
government is crucial. The BEV a Business Area32 due to the strict This article is intended for providing
acceleration program involves and specific reasons to obtain such general information on the latest
legal and/or regulatory issues. We
a variety of ministries and local Business Area.33 As of 2019, PLN
have no intention to and do not: (i)
government who has distinct yet still owns 90% of Business Areas in provide any legal services to, and
intertwined roles. Clear and constant Indonesia.34 Both PR 55/2019 and (ii) establish any client-attorney
communication among these MEMR 13/2020 indicate that this is relationship with, anyone through
ministries is necessary to avoid possible by allowing both business this article. We do not guarantee
the completeness of all opinions
contradicting policies and overlapping entities and state-owned enterprises to
stated in the article and we shall
responsibilities. develop BEV infrastructures, although not be liable in any way to you for
• land availability to install charging the implementation of this is still using any materials contained in
and battery exchange facilities. unknown.35 Therefore, clarity for the the article. If you wish to follow
Charging facilities are the key to intended messages of PR 55/2019 and up on any legal matter that is being
discussed in this article, kindly
promote BEV. Delayed charging MEMR 13/2020 is needed.
contact lawyers that are qualified to
facility construction due to limited practice in Indonesia. No one may
land available was a central issue in To note as well, there is also a recent use or reproduce, by any means, any
electric car implementation in China.28 issuance of Omnibus Law. Omnibus media and materials contained in
Governments, especially the local Law streamlines all the main licensing this article without prior approval
from UMBRA - Strategic Legal
government, need to provide sufficient into one Business License depending
Solutions. By reading this article
space in commercial and residential on the business activity's risk level or disclaimer, and/or entering
areas for charging facilities. Battery and rating scale. Hence procedures to into UMBRA’s website, you
exchange facilities may require obtain a license for BEV industries acknowledge and entirely agree with
smaller space as it is only needed and infrastructures have to follow the the content of this disclaimer.
to swap and charge the battery, but Omnibus Law. However, because
31 Article 9 MEMR 13/2020.

32 This statement is supported by IESR report that states that one of the reasons small-scale off grid renewable energy is not utilized optimally is because PLN often hampers
transfer process of its Business Area to IPP, see: Institute for Essential Services Reform, Indonesia Clean Energy Outlook 2020, http://iesr.or.id/wp-content/uploads/2019/11/
IESR-ICEO-Presentation.pdf.
33 See Article 3 of MEMR Regulation No. 28 of 2012 as lastly amended by MEMR Regulation No 07 of 2016.
34 Institute for Essential Services Reform, Access to Sustainable Energy for Rural Communities: Status, Challenges, and Opportunities, p. 12, http://iesr.or.id/wp-content/up-
loads/2019/05/Proceeding-PE-11.pdf.
35 Article 23 PR 55/2019.

COMPANIES
IEA: A rebound in global coal demand in 2021 is

set to be short-lived, but no immediate decline in sight
A
global economic recovery in
2021 is expected to drive a
short-lived rebound in coal
demand following the major
drop this year triggered by the Covid-19
crisis, according to a new report from the
International Energy Agency.
However, there is little sign that
the world’s coal consumption is set
to decline substantially in the coming
years, with rising demand in some Asian
economies offsetting declines elsewhere.
As coal is by far the single largest
source of global energy-related carbon
emissions, the trends outlined in the
report pose a major challenge to efforts to
put those emissions on a path compatible
with reaching climate and sustainable second half of the year.” terms is not set for a rapid decline in the
energy goals. Based on the assumption of a immediate future.
The past two years have seen historic recovery in the world economy, the “Renewables are on track to surpass
falls in global coal demand, led by IEA report forecasts a 2.6% rise in coal as the largest source of electricity
unprecedented drops in the United States global coal demand in 2021, driven by in the world by 2025. And by that
and Europe, says Coal 2020, the latest higher electricity demand and industrial time, natural gas will likely have taken
edition of the IEA’s annual market report output. China, India and Southeast over coal as the second largest source
on the sector. A 1.8% decline in coal Asian economies account for most of of primary energy after oil,” said Mr
demand in 2019 resulted mainly from the growth, although the United States Sadamori. “But with coal demand still
weak growth in electricity demand and and Europe may also both see their expected to remain steady or to grow in
low natural gas prices. Latest estimates first increases in coal consumption in key Asian economies, there is no sign
from the IEA suggest coal demand will nearly a decade. However, global coal that coal is going to fade away quickly.”
have plunged by a further 5% in 2020 on demand in 2021 is still forecast to remain The future of coal will largely be
the economic fallout from Covid-19. below 2019 levels and could be even decided in Asia. Today, China and
“The Covid-19 crisis has completely lower if the report’s assumptions for the India account for 65% of global coal
reshaped global coal markets. Before economic recovery, electricity demand or demand. With Japan, Korea, Taiwan and
the pandemic, we expected a small natural gas prices are not met. Southeast Asia included, that share rises
rebound in coal demand in 2020, but we The rebound in coal demand in 2021 to 75%. China, which currently accounts
have since witnessed the largest drop is set to be short-lived, with coal use for half of the world’s coal consumption,
in coal consumption since the Second forecast to flatten out by 2025 at around will be especially influential. By 2025,
World War,” said Keisuke Sadamori, 7.4 billion tonnes. This would make the European Union and United States
the IEA’s Director of Energy Markets 2013, when global coal demand reached will account for less than 10% of global
and Security. “The decline would have 8 billion tonnes, coal’s all-time peak. But coal demand, down from 37% in 2000.
been even steeper without the strong while coal’s share in both the electricity This will make the impacts of any further
economic rebound in China – the mix and the overall energy mix are in changes in demand in these markets very
world’s largest coal consumer – in the steady decline, coal use in absolute limited.

COMPANIES
TRIPUTRA ENERGI MEGATARA:

YOUR RELIABLE PARTNER
F
ounded in 2018, Triputra produced that come as the main time frame. During this transition
Energi Megatara (TEM) aims highlight of the business is both method and ways of blending is
to lead the supply of energy promising and aligned with the found to support the vision. TEM,
and services segment global focus of having a cleaner and align with the requirement chooses
across Indonesia. Focusing on efficient source of energy. the more accurate of blending
Kalimantan and the East part of The government of Indonesia’s process is choosing the in-line
the Nation, the company is looking ambition has changed the course blending as the method of creating.
for opportunities to spread the of energy business by requiring the This type of blending occurs at a
wing wider. blending of biodiesel in diesel fuel fuel rack, where dedicated blending
As the subsidiaries of Triputra since issuing its first set of blending equipment delivers a metered
Group, TEM is backed up with a targets in 2008 for the 2008–2025- amount of fuel, creating the clean,
supportive internal ecosystem that
help to sustain the business. Only in
a span of two years TEM has proven
its ability to compete in the energy
industry. Triputra Energi Megatara is
committed to developing long-term
and mutually beneficial relationship
with customers and business
partners across the nation, following
with the company’s vision of growing
energy business in Indonesia.
The quality of the biodiesel

Triputra Energi Megatara is ExxonMobil’s fuel Authorized
Branded Reseller, focus on providing integrated fuel solution
for Kalimantan and East Indonesia Region, we aim to be a
leading supplier of energy and services to all business segments
- Oky Heryanto - GM Commercial
less condiment biodiesel that is safe the HSE performance checkpoint of and partner is collaborating and
for the environment and delivers the complying with the law, intervene in synergize to provide multi-mode
maximum performance. unsafe or non-compliant situation, and multi range of services and
TEM is now competing with and respect the neighbourhood, solution, starting from vessels to
compelling product quality and bringing not only a high-quality trucks utilizations.
value-added service (VAS), enabled product but also with highest By finishing the 2020 in the right
by good key account management. ethical. To ensure the product rhythm and focus, the team is now
Subsequent with the HSE Golden is delivered in highest standard, looking at 2021 with eagerness and
Rule, TEM is committed in adopting TEM along with affiliates business confidence.

COMPANIES
IEEFA: Coking coal’s decline likely to follow

the path of thermal coal’s progressive demise
T
here has been a growing Absolute Zero by 2040, including its the long elusive breakthrough at scale. We
tsunami of climate steel – leveraging the growing power of note the growing strength of the European
commitment announcements the now global Responsible Steel standard Union’s emission trading scheme provides
combined with fossil fuel development and certification body. a critical pre-requisite to CCUS, namely a
exclusion policies by globally significant We exit 2020 with a growing list of price on carbon (EU emission allowances
financial institutions during December the world’s largest steel manufacturers are currently trading above €30/t).
2020, building on the pledges two having now committed to net zero Last week Nippon Steel set a goal to
months earlier by the leaders of China, emission by 2050 targets. Nippon Steel reach net-zero emissions by 2050.
Japan and South Korea committing to net and POSCO add global significance Last week Nippon Steel President Eiji
zero emissions targets. to the earlier leadership shown by Hashimoto set a goal to reach net-zero
On top of that, three leading ArcelorMittal (world #1), Germany’s emissions by 2050 as a core pillar of its
corporate announcements show ThyssenKrupp, Austria’s Voestalpine strategy, aligning with Prime Minister
the building momentum towards a and Sweden’s SSAB/LKAB/Vattenfall Yoshihide Suga’s pledge to achieve
decarbonisation-driven technology consortium pursing HYBRIT. carbon neutrality across the country.
disruption. Nippon Steel and POSCO There’s a growing list of the world’s Japan’s largest steel manufacturer said
– respectively the largest steel largest steel manufacturers committing to it will work with its rival JFE Steel to
manufacturers in Japan and South Korea net zero by 2050 replace coking coal with hydrogen as
– both committed to net zero emissions All of these steel manufacturers a reducing agent. It will start using an
by 2050 targets over the last ten days. reference two technological paths to the electric arc furnace (EAF) in a steel mill
And Australia’s Lendlease has released one goal of zero emissions, that being: in Hyogo Prefecture in 2022/23 as a first
a roadmap detailing how it will deliver 1. 1. the avoidance of CO2 through the step to wider use. Nippon Steel also said it
on its commitment to “Absolute Zero use of green hydrogen, and will also look into CCUS technologies to
Carbon by 2040”. 2. 2. the storage or use of CO2 produced ensure it meets its environmental target.
Lendlease is committing to zero in steelmaking (carbon capture, usage This past week also saw POSCO
emissions including indirect scope 3 & storage, or CCUS). pledge to achieve carbon neutrality by
emissions. 2050. POSCO is South Korea’s largest
To IEEFA, Lendlease’s announcement Both are being piloted, and neither steel manufacturing firm leveraging
could be a signal of profound global have been implemented at scale and innovative technologies such as CCUS
significance. Firstly, like a growing commercially proven as yet. 2020 has and hydrogen-based steelmaking. Like
number of global corporate majors, seen a global tsunami of announcements an ever lengthening list of financial
Lendlease is committing to zero for the development of green hydrogen institutions across banking (Shinhan
emissions, including indirect (scope 3) pilot projects. One of the largest and Financial, KB Financial, Woori Bank,
emissions sourced from activities across boldest recent announcements came Korea Development Bank), insurance
its value chain. Secondly, Lendlease from Fortescue Metals Group, one of the (Samsung Life Insurance, Samsung
has acknowledged that ‘net zero world’s largest iron ore mining firms, Fire & Marine Insurance) and asset
emissions by 2050’ is not sufficient to which announced a 235 gigawatt of management, POSCO’s ambition to
hold global temperature rises to 1.5°C, renewables plus green hydrogen ambition support the Korean government’s policy
suggesting action needs to be much faster, in November 2020. of achieving “2050 carbon neutrality”
particularly in the developed world. IEEFA has long documented our demonstrates its determination to play
Thirdly, Lendlease will not hide behind scepticism that CCUS will prove viable, a leading role in implementing Korea’s
the carbon offsets ‘figleaf’. Lendlease particularly as a saving angel for ageing “Green New Deal”.
mandates that all of its supply chain coal-fired power plants, but the H2H POSCO signed up to the TCFD
contracts will include a requirement for Saltend trials in the North Sea could prove (Task Force on Climate-related Financial

Disclosures) in March 2020 and by 30% by 2030 (relative to a 2018 The demand for coking coal could
committed to reduce CO2 emissions by base). ThyssenKrupp plans to run the well enter terminal decline over the
20% by 2030 and 50% by 2040, and entire Duisburg-Hamborn steel mill coming three decades
has now added the new target to attain using hydrogen to replace pulverized According to the government’s
net zero emissions by 2050. POSCO’s coal, thereby reducing steel emissions Office of the Chief Economist, Australia
CEO Jeong-Woo Choi stressed that by 20% by 2022 as its key first step. In supplies 55% of the world’s seaborne
industry partnership is a key tool. August 2020 ThyssenKrupp announced coking coal. Yet should the world’s steel
Additionally, POSCO committed to no it will build a 400,000 tonne per annum industry deliver on its net zero emission
new investments that utilise coal. green hydrogen-based steel plant for targets, the demand for coking coal could
commissioning in 2025 as the second step. well enter terminal decline over the
There is a global trend building Further, Austria’s Voestalpine is coming three decades. The International
ArcelorMittal announced a group- working with Siemens, Austrian hydro Energy Agency’s World Energy Outlook
wide commitment to being carbon neutral utility Verbund, the Austrian Power Grid 2020 models a halving of coking coal use
by 2050 and other partners to build the world’s globally by 2040 under its Sustainable
September 2020 saw the world’s biggest research plant for producing Development Scenario (a 3.5% annual
largest steel maker ArcelorMittal announce green hydrogen, located in Linz in a decline each and every year). A review
a group-wide commitment to being carbon project called H2Future. of the performance of the predominantly
neutral by 2050. ArcelorMittal noted that And back in 2016, SSAB (Sweden’s coking coal producing Coronado Global
one project key to this strategy is already leading steel maker), LKAB (Europe’s Resources share pricing since listing
being piloted in Hamburg, where by largest iron ore producer) and Vattenfall in October 2018 shows a near perfect
2023 it will operate Europe’s only direct (Sweden’s largest utility) joined forces to correlation with Whitehaven Coal (a
reduced iron (DRI) EAF facility, testing create HYBRIT – an initiative to replace predominantly thermal coal miner), with
the ability of green hydrogen to reduce coking coal, traditionally needed for ore- both destroying over 70% of shareholder
the iron-ore and form DRI, then using that based steel making, with green hydrogen wealth relative to a 10% rally in the
carbon-free DRI in the EAF in the actual at Lulea, Sweden. The result will be the Australian stock market overall.
steel-making process. world’s first fossil-free steel-making It is time for Australia to start
At the start of 2019 Germany’s technology. In December 2020 LKAB preparing a transition plan for the
ThyssenKrupp announced plans to announced plans to invest up to 400 growing inevitability of a global energy
invest €10 billion to make its steel billion kronor (US$46bn) over the next system transition. The momentum is
production carbon-neutral by 2050, with two decades to expand into an emissions- accelerating and the opportunities, and
an interim target to reduce emissions free iron process. risks, for Australia are enormous.

COMPANIES
CA | Boim
Moody's upgrades Geo Energy to Caa1; outlook stable
M
oody's Investors Service (MT) as of 30 October 2020 [1]. This par value, crystalizing a significant loss
has upgraded the follows the company's announcement in of value for creditors relative to the
corporate family rating August that it had secured mine license original obligation. The remaining notes
(CFR) of Geo Energy extensions at the two mines to 2027 and outstanding total only $59 million.
Resources Limited to Caa1 from Caa3. 2028, respectively, from their previous "Despite significantly lower leverage
In addition, Moody's has upgraded 2022 expiry dates. and lower interest costs, Geo Energy's
to Caa1 from Caa3 the senior unsecured These two factors mean the credit profile remains constrained by
guaranteed notes issued by Geo Coal company has satisfied the minimum its small scale and limited financial
International Pte. Ltd., a wholly-owned reserve conditions needed to prevent flexibility, including a low cash buffer
subsidiary of Geo Energy. the triggering of a put option on its which hinders its ability to make
The outlook on these ratings remains outstanding US dollar notes in the next acquisitions in order to grow and
stable. "The ratings upgrade reflects the four months. These minimum reserve replenish its declining coal reserves,"
elimination of near-term refinancing conditions included (1) extension of adds Hasnain, who is also Moody's Lead
risk for Geo Energy, as the company existing mining licenses at SDJ and TBR Analyst for Geo Energy.
announced that it has met the conditions to beyond 4 October 2025 and (2) having Moody's estimates Geo Energy
required to prevent triggering a put more than 80 MT of coal reserves, with will generate sufficient internal cash to
option on its US dollar notes in April the reserves measured no earlier than six repay the outstanding notes at maturity
2021," says Maisam Hasnain, a Moody's months before 4 April 2021. while maintaining a minimum cash
Assistant Vice President and Analyst. As a result, the US dollar notes will balance, similar to its $25 million
mature as originally scheduled in October balance as of 30 September 2020.
Ratings rationale 2022, affording the company time to However, this limited buffer could
On 2 December, Geo Energy increase cash generation prior to the erode in the event of persistently
announced that its updated coal reserve maturity. Over the past 12 months Geo low coal prices or cuts in production
report showed its combined reserves Energy has cumulatively repurchased volumes over the next 12-18 months.
at its two operating mines, PT Sungai around $241 million of the notes' original Moody's expects the company may
Danau Jaya (SDJ) and PT Tanah Bumbu $300 million principal amount, at a seek to raise money via prepayment
Resources (TBR) were 86 million tons considerable discount to the original facilities under its existing coal offtake

agreements to help bridge any small coal mining industry, including carbon Outlook
funding gap when its notes come due in transition risks as countries seek to The outlook is stable, reflecting
October 2022. reduce their reliance on coal power. Moody's expectation that Geo Energy
However, Moody's expects Geo Geo Energy's two operating mines are will maintain profitable and cash-
Energy's ability to raise large amounts adjacently located in South Kalimantan generative operations, and sufficient cash
of capital to invest in growth will be and vulnerable to adverse weather. For sources to meet its cash needs over the
challenging because the company's example, operations at one of its mines next 12-18 months. The stable outlook
credit profile will weaken as its existing were temporarily halted for around a week also assumes Geo Energy does not make
coal reserves continue to decline. With in June 2019 due to prolonged flooding. further discounted notes buybacks.
total proved and probable reserves of 86 Geo Energy is exposed to social Factors that could lead to an upgrade
MT as of 31 October, Geo Energy has risks associated with the coal mining or downgrade of the ratings An upgrade
a relatively short reserve life of about industry, including health and safety, is unlikely over the next 12-18 months
seven years at its target production level responsible production and societal given Geo Energy's small scale, short
of 12 MT per annum. trends. The company has implemented an reserve life and limited financial flexibility
In addition, Geo Energy has not yet Environmental and Social Management to grow its business while repaying its
established a track record of executing System, which seeks to address issues outstanding notes in full at maturity.
on its growth plans. While a majority of such as workplace health and safety Nevertheless, prospects for an
proceeds from its $300 million notes issued procedures, and local community upgrade could arise over time if Geo
in September 2017 were earmarked for coal development. Energy improves its business profile by
mine acquisitions, the company has been With respect to governance, Geo growing its coal reserves, while adhering
unable to complete an acquisition in the Energy's ownership is concentrated in its to conservative financial policies
last three years. At the same time, its cash promoter shareholders, who own around and maintaining a prudent approach
available to make acquisitions has eroded 39% of the company. Other governance toward investments and shareholder
primarily due to continued discounted risks entail the company's financial distributions.
buybacks of its US dollar notes. policies, including its willingness to use On the other hand, Moody's could
cash for discounted notes repurchases, downgrade the ratings if Geo Energy's
ESG considerations resulting in a loss of value for creditors cash generation declines, such that its
Geo Energy faces elevated relative to the original obligation. cash sources are insufficient to meet its
environmental risks associated with the needs over the next 12-18 months.

Fransiscus Rodyanto & Fernando Lintong
ANALYSIS SSEK Legal Consultants
CA | Khalsa
Indonesia’s Omnibus Law puts focus
on direct use of geothermal resources
The Indonesian Government enacted Law No. 11 of 2020 regarding Jobs
Creation (the “Omnibus Law”) on November 2, 2020. The stated aim of
the Omnibus Law is to bolster investment and create jobs by streamlining
regulations and simplifying the licensing process to improve the ease of
doing business in Indonesia.
T
he Omnibus Law amends Centralizing the direct use of stipulate norms, standards, procedures
various provisions in laws geothermal resources and criteria for the direct use geothermal
across numerous sectors, The authorities of the central resources. Local governments must
including amending 29 government and local governments then follow these norms, standards,
provisions and removing six provisions in (provincial, regency and municipal) to procedures and criteria when exercising
Law No. 21 of 2014 regarding Geothermal oversee and regulate business activities their authorities, including when issuing a
(the “Geothermal Law”). related to the direct use of geothermal Business License for the Direct Utilization
Many of the changes to the resources remain the same as under the of geothermal resources, known as a
Geothermal Law concern the direct use of Geothermal Law. Perizinan Berusaha Terkait Pemanfaatan
geothermal resources. We look at some of However, the Omnibus Law now gives Langsung or “PBPL”. This direct use
the key changes. the central government the authority to license was known as an Izin Pemanfaatan

Langsung under the Geothermal Law. conservation areas b. carrying out indirect geothermal
Details regarding the norms, standards, In keeping with its stated aim of utilization business activity without a
procedures and criteria shall be further easing the process of doing business in PBPTL; and
regulated under a government regulation, Indonesia, the Omnibus Law removes the c. intentionally using a PBPTL not in
but it is hoped that they will simplify provision of the Geothermal Law requiring accordance with its purposes.
licensing matters, particularly the licensing a separate license from the Minister
authority given to local governments. of Maritime Affairs and Fisheries for Conclusion
business activities related to the indirect The Omnibus Law focuses on business
Determining the price for direct utilization of geothermal resources in activities related to the direct use of
use of geothermal energy water conservation areas. It is hoped geothermal resources. It gives the central
The Omnibus Law removes the that removing this additional licensing government the power to control the
provision in the Geothermal Law on the requirement under the Geothermal Law authorities given to local governments.
authority of the central government to will spur investment in the sector. The Omnibus Law also seeks to encourage
determine the price of geothermal energy investment in the direct use geothermal
from direct use business activities. Instead, Criminal provisions under sector by scrapping the production fee for
the Omnibus Law stipulates that the price the omnibus law the direct use of geothermal resources. For
of direct use geothermal energy will be The Omnibus Law has added indirect geothermal activities, the Omnibus
stipulated in a government regulation that qualifications for certain criminal offenses Law eliminates the dual licensing regime
is to be issued. under the Geothermal Law, meaning in water conservation areas. But it will
We assume that the central that criminal sanctions for these offenses be important to closely monitor further
government will still have the authority will be imposed only if the offenses have implementing regulations to be issued for
to determine the price of direct use resulted in casualties or have damaged Omnibus Law.
geothermal energy price, but we will have health, safety and/or environment. The
to wait for the implementing government affected offenses are as follows:
to be certain. a. conducting direct geothermal activities
(i) without a PBPL, (ii) not in the
Removing the production fee for the location stipulated in the Business
direct use of geothermal resources License, and (iii) not in accordance
The Omnibus Law removes the with its purposes;.
requirement for holders of a PBPL to b. conducting indirect geothermal
pay production fees (iuran produksi) for activities without a Business License This article has been contributed
by Fransiscus Rodyanto and Fernando
direct use geothermal energy. Now PBPL for Indirect Utilization (Perizinan Lintong of SSEK Legal Consultants,
holders are only required to pay local taxes Berusaha untuk Pemanfaatan Tidak a full-service corporate law firm
and retributions/levies. Langsung or “PBPTL”). based in Jakarta. Readers can contact
the authors at fransiscusrodyanto@
It is hoped that removing the ssek.com and fernandolintong@ssek.
production fee will encourage greater The Omnibus Law also removes the com. The above material is intended
investment in Indonesia’s geothermal threat of imprisonment as contained in for informational purposes only and
does not constitute legal advice.
sector, particularly in business activities provisions in the Geothermal Law for the Circumstances may change and this
related to the direct use of geothermal following violations: material may become outdated. SSEK
resources. a. intentionally conducting exploration, is under no obligation to update or
correct this material. Any reliance on
exploitation and/or utilization
the material contained herein is at the
No separate license for indirect activities not in the designated user’s own risk.
geothermal use in water work area;

FOCUS
Triputra Energi Megatara:

Emerging Energy Solution
By Tri Subhki R.
A
ddressing the Covid-19 Sulphur
pandemic that hit businesses
around the globe, industries TEM Govt.
Details Benefits Product Standart
have been searching
measures to operate optimally amidst • Naturally occuring Diesel fuel with high sulphur content : <500ppm 2500ppm
the unprecedented time. In mining compounds in crude oil • Can cause wear in diesel engines as a
result of the corrosive nature
operations, where fuel corresponds the • Sulphur in diesel is
large share of operational costs, miners remmoved by the de • Contributes to negative environmental
culhurication plant in the and health concern with sulphur emissions
ultimately require reliable services with refinery
competitive pricing fuels. • Acts as a temporary catalyst poison,
• Use of flower sulphur fuel is reducing system eﬃcieny
PT Triputra Energi Megatara in line with Indonesian
(TEM), an emerging energy solution goverment’s commitment to Diesel fuel with low Sulphur content
reduce emissions directly reduces sulfate particulate
provider, offers energy supply solutions emissions
with quality, reliable and competitive
prices for customers in the industry,
including mining. Cetane Number
“Emerge from a strong, high quality
TEM Govt.
product background from ExxonMobil Details Benefits
Product Standart
biodiesel, we are also equipped with
• Cetane number provides a measure of High cetane fuels provide 50 - 56 48
excellent service procedures,” Gunardi
the ignition characteristics of diesel in
Hadi Atmodjo, CEO Triputra Energi compression ignition engines • Good cold starting and
reduce smoke
Megatara, said recently.
• As Cetane number reduces, diesel
TEM personnel are intact with engine performance progressively • Lower combustion noise
the excellence culture of 5R (rapi/ deteriorates • Reduced exhaust emissions
tidy, resik/maintained, rajin/diligent,
rawat/caring, ringkas/efficient). TEM
believes that the team is ready to be the availability of fuel. Losses during In addition, TEM really understands
held accountable in their movement, and storage and distribution often happened about quality of biodiesel blend fuels, like
always try to deliver the best. and not rarely it exceeded the allowable B-30, which is determined by three things
“We offer flexibility that may not be tolerance limits. namely quality of diesel oil, blending
owned by others on-par/comparable scale The above matter can lead to method, and storage specs and handling.
fuel business,” Gunardi said. high operating costs, therefore, one TEM’s Mobil Diesel Fuel has two
Not only with the product quality, of the alternative designed concepts key qualities that define our excellence:
TEM is also equipped with Vendor is managing fuel by using a Vendor sulfur content and cetane number.
Held Stock (VHS) system, where TEM Held Stock system, where there is There are several blending
makes sure the goods are not only well manpower and facility management techniques, such as splash blending,
delivered but also well maintained. personnel invested to maintain the safe in-tank blending, and in-line blending.
The current system cannot guarantee delivery and stock. ExxonMobil’s biodiesel-30 product that

[FOCUS]
TEM sold uses in-line blending technique which causes minimum absorption and executes it with discipline in prioritizing
to ensure the quality of our blended excessive supply in all refinery. This quality and ensure agile logistic capacity
diesel fuel. This results in a clear and year, biodiesel has also experienced a to keeps up with customer demand and
bright diesel fuel appearance. significant decline across the year 2020. local flexibility. Having more than 20 years
TEM owns permanent fuel “Our strategy in 2020 basically is to long of contract with ExxonMobil, TEM is
storage infrastructures in Samarinda, survive – first and foremost was making driving the company to delivers even more.
Banjarmasin, and Balikpapan with sure everyone safety including our partner In 2021, Indonesia’s government has
up to 115.000 KL capacity. “Our and customer. We revamp the business the ambition of having biodiesel for B40
facilities and operational excellence process to adapt with new normal and still / B50, along with this goal, preparation of
can guarantee supply continuity and making sure the operational excellence in IVO (industrial vegetable oil) Standards as
security,” Gunardi said. place,” Gunardi said. an alternative for Green Fuel raw materials
TEM also focuses to develop their TEM is rolling out the is being prepared. This lengthy measure
logistic capabilities by having more #Ber1MelawanCOVID - a part of is conducted so that Green Fuel Cost of
than 500 delivery points across east Triputra Peduli for Indonesia – where Production can compete with other fuels.
and south Kalimantan, this vision is TEM distributes around 200,000 kl Maximization for capacity
solidified by empowering the 3PL with across our business networks. expansion and completion is also
local ‘players’ with more than 150 These front-liners at TEM’s networks necessary as a part of improving supply
vehicles utilized. are so-called “the unseen heroes”, and
Multi-mode delivery to build TEM applauds them for their continued
flexible options for customers commitment in powering our nation even
that enhance customer needs by in the current challenging condition.
customizing delivery (vessels, trucks, “We believe that this too shall pass,
etc.) (last-mile delivery)) and most and we will be #strongertogether. Until
important during the pandemic. then, let’s continue to support each other,
care for one another,” Gunardi said.
Surviving mode
During the pandemic there is the 2021 outlook
phenomenon of decreasing demand TEM delivers circa 400,000 KL of
and also the fall in world oil prices B30 in the year of 2020 and the company
ASTM Colour Chart

• If diesel colour initially is > 2.0,
this is likely due to contamination
Fail Blending Method Mobil Diesel Oil B30

capacity. This is done by utilizing fuel through the Balikpapan Terminal sure TEM can build the supply chain
several new factory developments. utilization. TEM fully knows how to system much more efficiently.
However, this has been delayed due blend and deliver the goods well to the From the operations perspective,
to the Covid-19 pandemic. Several customers. TEM is focusing on the ISO
BUBBN (Badan Usaha Bahan certification process, where 70 percent
Bakar Nabati) that have already Long-term customers of the whole process is already
expanded have not yet entered the From the commercial perspective, completed. “We aim to optimize
2021 procurement due to delays in TEM with ExxonMobil is expecting our quality management system and
administration submissions. to reach more long-term customers standardize our process to ensure
Knowing this outlook, first and by providing a full manpower and that they meet customer and other
foremost, TEM will definitely comply additional services as mentioned earlier. stakeholder needs,” Gunardi said.
with the government’s goal and TEM is eagerly searching for committed TEM is also adopting systems
direction. “We are more than ready to and loyal customers that want to to corporate processes through
face the changes with the strong partner aggressively accelerate the business. digitalization hoping to create app-
we are equipped with. We understood TEM isnow equipped with based and data-driven interconnection.
the challenges in raising the fuel Balikpapan Terminal where the Also, as all the other cores are being
standard, where it almost solely depends company holds up to 115,000 KL improved, TEM’s ambition of having
on the blending method,” Gunardi said. capacity. This infrastructure can a physical dedicated unit to strengthen
TEM shows proven capability to guarantee more efficient delivery points the company’s logistic infrastructure is
be able to deliver the best quality of in eastern part of Indonesia, and make also on the timeline.

MAINSTORY
A BETTER 2021
After unprecedented market disruption due to
Covid-19 pandemic during the year, industry
players expect better condition in 2021 supported
by improving coal prices in recent weeks. However,
many industry players believe that coal market may
not recover to the 2019 level anytime soon.
By Tri Subhki R.
I
nternational Energy Agency both the electricity mix and the overall at Ministry of Energy and Mineral
(IEA) stated that global economic energy mix are in steady decline, coal Resources (MEMR), said recently.
recovery in 2021 is expected to use in absolute terms is not set for a
drive a short-lived rebound in rapid decline in the immediate future. Traditional markets
coal demand following the major drop IEA stated that the future of coal Government estimated Indonesian
this year triggered by the Covid-19 will largely be decided in Asia. Today, coal export this year may be at least
crisis. However, there is little sign that China and India account for 65 percent 392.4 million tons with the assumption
the world’s coal consumption is set of global coal demand. With Japan, of 32.7 million tons export per month.
to decline substantially in the coming Korea, Taiwan and Southeast Asia It means that coal export in 2020 is
years, although the rising demand in included, that share rises to 75 percent. estimated 14 percent lower than coal
some Asian economies will offset the China, which currently accounts for half export realization in 2019 at 454.5
decline elsewhere. of the world’s coal consumption, will be million tons due to impact of Covid-19
Based on the assumption of a especially influential. pandemic.
recovery in the world economy, the IEA By 2025, the European Union and “The export potentials remain widely
report forecasts a 2.6 percent rise in United States will account for less than open in 2021. The export potential in
global coal demand in 2021, driven by 10 percent of global coal demand, down 2021 is expected to be between 406.3
higher electricity demand and industrial from 37 percent in 2000. This will make million to 427 million tons in 2021,”
output. China, India and Southeast the impacts of any further changes in Muhammad Wafid, Director of Mineral
Asian economies account for most of demand in these markets very limited. and Coal Program Development in
the growth, although the United States Available Covid-19 vaccines offer Directorate General of Mineral and
and Europe may also both see their first better expectation of global economic Coal, said recently.
increases in coal consumption in nearly growth next year, which will in turn More than 50 percent of Indonesia’s
a decade. improve the energy demand. Coal prices total coal production are dedicated for
However, global coal demand in showed positive trend in recent weeks China and India markets with the export
2021 is still forecast to remain below supported by increasing demand in volume in 2019 reaching 144 million
2019 levels and could be even lower some countries. Coal Price Benchmark tons (32 percent) and 117 million
if the report’s assumptions for the (HBA) for December is US$59.65 per tons (26 percent) to China and India
economic recovery, electricity demand ton or 7.07 percent higher than HBA in respectively.
or natural gas prices are not met. November at $55.71 per ton. Wafid added that the potential coal
The rebound in coal demand in 2021 Although the coal prices showed export to China is estimated to range
is set to be short-lived, with coal use improving trend, the government of between 185 million tons and 202.3
forecast to flatten out by 2025 at around Indonesia has set flat coal production million tons in 2021. “The coal quality
7.4 billion tonnes. This would make target at 550 million tons in 2021. “The requirements are range from 3,000 to
2013 as coal’s all-time peak, as global government plans 550 million tons 6,000 kcal/kg (NAR) for power plants,
coal demand reached 8 billion tonnes production, same level as this year,” cement plants and steelmakers,” he said.
in the year. But while coal’s share in Sujatmiko, Director of Coal Development To secure coal export volume in

MAINSTORY
Seaborne thermal coal market demand

NO COUNTRY 2019 2020 2021 MAIN PRODUCT MAIN BUYER
1 China 206.4 173.6 176.9 3000NAR - 6000NAR Power Plants, Cement, Steel Maker, Stock & Sale Trader
2 India 178.2 147.3 163.0 3400GAR - 6300GAR Power plants, Cernent, Smelter, Steel Maker, Stock & Sale Trader
3 Japan 123.8 121.0 128.0 4700NAR - 6200NAR Power Plants, Paper Mill, Steel Maker, Chernical Industry
4 Suth Korea 102.0 85.4 86.9 3800NAR - 5500NAR Power Plants, Chemical Industry, General Industry
5 Taiwan 55.4 52.6 55.1 4800GAR - 6200GAR Power Plants, Chemical Industry, Stock & Sale Trader
6 Europe 69.5 36.1 35.7 4200GAR - 6000GAR Power plants
7 Malaysia 31.8 34.8 36.0 4200GAR - 6300GAR Power Plants, Cernent
8 Vietnam 31.0 33.1 38.6 4200GAR- 5500GAR Power Plants, Steam Business, Stock & Sale Trader
9 Philippines 27.5 25.5 29.8 4200GAR - 6300GAR Power Plants, Cernent
10 Thailand 22.9 22.5 23.3 3800GAR - 6200GAR Power plants, Cernent, Chemical, Stock & sale Trader
11 Pakistan I5.5 16.7 22.8 5300GAR - 5500GAR Power Plants, Bricks Industry
12 Hong Kong 10.0 5.7 5.5 4700GAR - 6300GAR Power Plants, Cernent
Source: MEMR
the coming years, the government and from north-eastern India to power end of lockdown periods. “Coal import
Indonesia Coal Mining Association utilities across the country,” Kannan demand from Vietnam reached the
(ICMA) in November signed coal said recently. highest level this year,” he said.
contract agreement with China Coal Kannan added that India’s reliance In 2019, coal-fired power plants
Transportation and Distribution on seaborne thermal coal imports is generated almost 40 percent of total
Association (CCTDA) worth US$1.46 not expected to fade away in the near power output in Vietnam and about a
billion for three years. term, as they require the lower sulfur quarter of the coal was imported. By
“This agreement is expected to and lower ash coal from Indonesia country origin, Australia is the largest
provide benefits for coal industry for fuel and blending. “Coastal power coal supplier for Vietnam, and followed
players in the certainty of coal exports plant’s boilers are designed to consume by Indonesia.
to Indonesia and to China so that it will imported coal,” he said. There are 31 operating coal-fired
be a positive sentiment in supporting Non-traditional markets power plants in Vietnam and 9 new
Indonesia’s national economic Since traditional export markets, additional coal-fired power plants are
recovery,” Pandu Sjahrir, Chairman of namely China and India, are expected under construction. In addition, there
ICMA, said. to increasingly rely on domestic coal are 29 new coal-fired power plants are
Meanwhile, India keeps pushing supplies, Indonesia coal producers are under permitting processes.
domestic coal production up to seeking new non-traditional markets, S&P Global Platts stated that
700 million tons per year to supply particularly countries in South and Southeast Asia is seeing rapid growth of
domestic coal-fired power plants. Southeast Asia. thermal coal demand, and imports are
However, Deepak Kannan, Managing “Southeast Asia and South Asia expected to reach around 130 million
Editor, Asia Thermal Coal S&P Global are the regions that will see the highest tons this year.
Platts, said that India will remain facing growth of demand for coal import in As the cheapest form of fossil fuel
logistic issues in transporting coal to 2021,” Nyoman Oka, Chairman of which is easily and widely available in
coastal regions. Marketing Committee at ICMA, said the market, developing nations which
“India’s existing domestic recently. Nyoman added that the coal require energy fuel at the lowest cost
infrastructure and transport facilities import demand from India and Philippine will rely on thermal coal for power
also prove challenging to bring coal show encouraging trend following the generation.

Domestic markets consumption will not recover to In 2020, PLN Batubara stated
After experiencing heavy blow during 2019 level at least until 2023 after that the coal quality requirement is
the year due to Covid-19, domestic coal experiencing a sharp correction in 2020 mostly contributed by 4,400-4,800
consumption is expected to recover next due to Covid-19. In other hand, PLN also kcal/kg as much as 51 million tons
year supported by improving energy expected the coal quality requirement compared to 29 million tons of 4,000-
demand. In addition, domestic mineral for domestic coal-fired power plants will 4,400 kcal/kg. However, by 2028, the
smelter industry will also sustain the shift to lower rank coal in a bid to tap coal requirement is expected to be
increasing demand of coal. abundant local coal reserves. dominated by lower quality coal as
The Covid-19 pandemic causes PT PLN Batubara, a subsidiary of much as 69 million tons (4,000-4,400
lower domestic coal consumption PT PLN (Persero), expects the coal- kcal/kg) compared to 49 million tons
by state-owned utility company PT fired power plants which are going (4,400-4,800 kcal/kg).
PLN (Persero), as the largest domestic to be online by 2028 will consume “There will be shifting coal quality
coal user, and cement industry. lower quality coal ranging from 4,000 requirement in the future. We will
However, ICMA estimated that the to 4,400 kcal/kg (GAR). Operating consume more lower quality coal,
domestic coal consumption will recover coal-fired power plants are mainly even lower than 4,000 kcal/kg,” Kemal
in coming years. consuming coal ranging from 4,400 to Djamil Siregar, President Director of
PLN estimated that the coal 4,800 kcal/kg (GAR). PLN Batubara, said recently.
Estimated Domestic Market Obligation (DMO) 2020-2024

2020E
2020E Revised
User 2021E 2022E 2023E 2024E Quality (kcal/kg)
Pre-Covid-19 Pandemic
Covid-19
Coal-fired power plant 108.92 95.6 96.66 129 135 137 4000 - 6300
Metallurgy 16.52 23.98 35.37 16.63 16.66 16.73 >3400
Fertilizer Fertilizer (3379-5305)
Cement Cement (4200-4500)
29.45 28.06 35.38 32.5 32.5 33.65
Textile Textile (4200-4500)
Pulp & paper Pulp & paper (4200-4500)
Briquette, Ceramics, petrochemical,
Alchemy Chlore N/A 1.16 1.78 N/A N/A N/A
Total (million ton) 155.00 148.80 171.19 184.08 184.08 187.38
PLN & IPP Coal Demand Projection in Post-Pandemic Covid-19

152.6
134.8
160
136.8
135.1
150
132.8
128.5
125.7
140
120.5
coal requirement (million mt)
130
108.9
136.6
120
130.2
124.3
97.7
110
118.1
91.1
112.4
100
82.3
107.4
90
101.1
74.1
70.8
95.7
80
90.4
78.5
70
60
2014 2015 2016 2017 2018 2010 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
realization moderate simulation RUPTL 2019-2028 Source: ICMA

ANALYSIS
By Ian Wollff
The author is an expatriate principal geologist of about 30 years’
experience in the Indonesian exploration and mining industry.
The authors’ web site is www.ianwollff.com
It’s raining men – Gender in

the Indonesian mining sector
Introduction industry sector, government agency is the process of assessing the
Indonesia is a nation of highly appears to use common terms, but implication for women and men
diverse cultures that is held together with different meaning or application. of any planned action, including
under the motto “Unity in Diversity” A suitable definition may be found in legislation, policies or programmes,
[Bhinneka Tunggal Ika] to promote the UNDP Indonesia Gender Equality in all areas and at all levels. The
tolerance, and sums up our global Strategy and Action Plan (2017-2020) ultimate goal is to achieve gender
common humanity. Women have as outlined in the booklet “Change equality.” A different reference
always worked within the Indonesian Makers”. The section on terminology is refers to gender mainstreaming at the
mining industry, though traditionally summarized here: mine site as “add women and stir”.
with gender identified specific roles. Gender: “Refers to the social • Gender -based Violence: Gender-
A generation ago women may have attributes, opportunities and interactions based violence is a form of
comprised about 1% of the workforce, associated with being male and female. discrimination that seriously inhibits
but this has increased with the opening Gender determines what is expected, women’s or men’s ability to enjoy
up of high schools and universities allowed and valued in for females and rights and freedoms on a basis of
to welcome women in science, males. Gender is part of the broader gender equality”.
engineering, business and similar socio-cultural context. Other important • Gender Parity: “Refers to equal
studies. The larger international criteria for socio-cultural analysis numbers of men and women at all
exploration and mining companies include class, race, poverty level, ethnic levels of the organization.
played a pioneering role in developing group and age.” • Women’s Rights: “The human rights
todays modern mining industry, • Gender Equality: “Refers to the are to be applied to all people. The
including the encouragement of women equal rights, responsibilities and full and equal participation of women
to enter all parts of the mining industry. opportunities of female and male. in all matters, and eradication of
Women in Mining is a mainstream Equality does not mean that women discrimination based on sex that may
issue, with many government bodies and and men will become the same but reduce their human rights.
NGO’s operating in this space. that their rights, responsibilities
This article takes a quick look at and opportunities will not depend Woman’s Empowerment: The core
today’s Indonesia’s Women in Mining on whether they are born male or of empowerment lies in the ability of
in the formal mining sector. female. Gender equality is not a a woman to control her own destiny.
‘women’s issue’. This may include equal opportunities
Terminology • Gender Mainstreaming: in development, wealth, politics, and
It seems every discussion group, Mainstreaming a gender perspective choices.

CA | Boim
Gender data The “Report on Mining Sector World Bank survey of the Indonesian
UNDP tools and platforms reinforce Diagnostic” for the World Bank mining industry, based on the 2019
evidence-based programming for (Nov 2018) found that gender national labour survey, found that
improving parity, participation and segregation of data is not required for women comprise less than 10% of the
representation of women and men. Sex- the legally required documents of 1) sector’s total workforce. The Director
disaggregated data and gender statistics Environmental Impact Assessment, General of Mineral and Coal 2019
are critical for evidence-informed and ensuing reports & permits, 2) work report does not appear to contain
decisions and results-based programs Social Impact Assessments (SIA) and any breakdown of male and female
that promote gender equality and 3) Social Management and Monitoring employees at the directorate, nor in the
women’s empowerment. There is a lack Plans (SMMP). A WIME Coaltrans mining sector.
of reliable factual data on the impact of presentation (2019) reported that in A survey was undertaken by
women in the mining industry – much of 2016 the mining sector comprised 6.7% this author to get an appreciation of
the data is based on “opinions”. female and 93.7% male employees. A the numbers of women engaged by

ANALYSIS
responsible mining companies in and Political Rights (ICCPR) in 2006. companies annual reports include
Indonesia. This survey was based on The National Gender Mainstreaming some statistics on gender breakdown.
a review of the 2017 - 2018 annual Policy (Presidential Decree No 9 of There is little mention of gender in
reports of companies listed on the 2000 on Gender Mainstreaming in the Indonesian Corporate Governance
mining board of the Indonesia Stock National Development Planning and Manual (1st edition 2014) published
Exchange (IDX) and was published in Programming) guides the National in association with the Indonesian
Coal Asia Vol 102 [May-June 2019]. Long-term Development Plan (RPJPN) Financial Services Authority [OJK]
This review found that the overall 2020 - 2024 which confirms the and International Finance Corporation
ratio of commissioners is 188 males to Indonesian government’s commitment [IFC]. We only find a reference to
7 female commissioners (3.7%), and to gender equality, with specific laws gender on page 533, under Best Practice,
in no company are there more female in place and aligning the National in reference to SOE’s stakeholders
commissioners to male commissioners. Development Agenda with 17 concerns that there should be no
The overall ratio of directors is 187 Sustainable Development Goal (SDG) employee discrimination based on race,
males to 18 female directors (9.6%), #5 being Gender Equality religion, class or gender.
and in one company there are more An ongoing World Bank and
female directors than male directors. Canadian government study on gender Gender within IDX 2019 miners’
Some 19 of the 47 companies provided mainstreaming in the Indonesian annual reports
details of gender of employees, wherein mining industry shows that only a few IDX mining companies 2019 annual
the total men were 50,844 and women companies still implement gender blind reports are typically 200 to 500 pages
3,568 making the female percentage of policies. Gender-sensitive facilities and long, and follow variable formats.
6.5% of the work force. personal protective equipment are now Some 30 IDX mining companies 2019
A similar review by this author available in many formal companies. annual reports were reviewed using the
of the 2019 annual reports on the The global “He-for-She” campaign “search” function. The term “Gender
Singapore [SGX], Philippines [PSE] is one of the UN Women’s programs to Policy” did not appear in any of the 30
mining stock exchanges was published implement the Sustainable Development companies. The term “Gender Equality”,
in the Asian Miner magazine around Goals (SDGs) development agenda, with or just “Gender” appeared in 22
April- May 2020. The SGX review of the fifth indicator about gender equality. companies, leaving 8 companies without
20 mining companies found there were President Ir. H. Joko Widodo stated that mentioning “Gender”, thought the terms
112 directors with a ratio of 90% male women represent half of the actors and male / female were not searched for.
and 10% female, plus 59 executives beneficiaries of development. Related The term Gender Equality was
being 86% male and 14% female. The to this, issues of gender mainstreaming quite popular, and typically referred
PSE review of 7 mining companies had are a main focus in government. A to the objective of employing more
65 directors, of which 77% were male, press release (2016) from the Ministry women, particularly at the corporate
and 23% female, plus 47 executives of of Empowerment, Women and Child and executive level. The following
which 66% were male and 34% female. Protection states that “He-For-She is a example of Gender Equality is almost
form of government commitment that standard text for most companies; “The
Evolving regulations on gender positions men to be more concerned company provides equal opportunities
The Government of Indonesia about gender equality. In a 2017 UNDP to all employees to develop their
ratified the UN Covenant on Civil and booklet mentioned that the Government careers and competencies without
Political Rights and committed to the of Indonesia commenced redrafting the discrimination of gender, age, ethnicity,
Beijing Platform of Action, both of Law on Gender Equality. [Apparently religion of race”. A few companies
which provide guidance on removing this redrafting is ongoing]. tack on a short statement recognizing
barriers preventing women from fully The IDX requires “Sustainability human rights, equal pay and such.
participating in public life. Indonesia Reporting” [ 51/POJK.03/2017] for A few companies mention the basic
also signed the International Covenant financial matters, but gender is not lines about gender equality, but ore
on Economic, Social and Cultural Rights specifically mentioned as part of open in stating the company does not
and the International Covenant on Civil sustainable reporting. Many IDX mining have certain policies governing gender

CA | Boim
equality and employment opportunities”. This includes a strong commitment to Freeport-McMoRan global stated a
On an another occasion the companies increasing women participation at all somewhat nebulous statement “In 2019,
tack-on the recognition of some gender levels and at all fields in the workplace. we launched a global initiative to further
differences;” However, the majority of The Gender Diversity policy was strengthen our focus on diversity and
the Company’s employees are male, established to address the change in the inclusion in the workplace. Our initial
bearing in mind that the type of business working environment and the culture of focus areas include executive training
the Company engages in is in the mining the workforce to ensure the workplace and various human resource processes,
sector and are located in remote areas.”. is free of discrimination and enhanced including identifying more diverse
Gender Diversity is often assimilated by respect and dignity, and recognition applicant pools and measuring trends.”.
under Gender Equality. However, of the benefits gender diversity brings. this was backed up with a few words on
it seems that some reports limit the Training will allow both genders to have employing women and outlining some
recognition of gender diversity to the equal opportunities for advancement. of their work tasks.
board and commissioners. For example: The aim is to establish a pervasive VALE “Since 2011, the mining
“Diversity in the composition of the culture across the organisation where company has a Gender Equality
board of Commissioners and Directors diversity is embraced as the norm. program, which aims to increase
has diversity in terms of education, Some international mining women’s staff in the company and
gender, work experience and age”. companies operating in Indonesia’ in mining”. The initiative mentions
Fortunately, there are just a few recent annual reports contained various actions. The gender program is
Indonesian companies that seem to take somewhat limited outlook on gender. a result of the signing of statement of
reporting on Gender issues in a more None of them outlined a clear corporate support to the Principles of Women’s
comprehensive manner. For example: gender policy, but shifted to the new Empowerment, prepared by UN Women
PT. Agincourt Resources is proud of popular management term of gender and the United Nations Global Compact.
their commitment to Gender Diversity. equality and diversity. These principles offer guidance on how

ANALYSIS
to empower women in the workplace into aspects of their operations, but do not like to associate their success
and in local communities. others have not. One common theme with feminism or women’s rights for
of the paper refers back to Laplonge fear of alienating their mostly male
Men to adjust to gender equality 2014, and others, wherein the critical colleagues. Women geoscientists may
“The role of gender in the extractives issue is that mining is traditionally a have a preference for having more
industries” by Catherine Macdonald man dominated industry, wherein it women and greater opportunities for
(March 2017) published under wider. is critical for men to adjust to women women in their industry, though most
unu.edu. This paper reviews literature entering the workforce. Laplonge says of them are opposed to any form of
to better understand how gender is that ‘“gender” is not about what men preferential policies for women, in case
understood in the extractives sector, and women are, but needs to be seen it undermines the positions that they
and its changes over time. The paper is as what men and women do. This then themselves had achieved.
not based on primary research, but on enables a discussion of behaviour rather There is talk about the belief that
interview, references to scholarly papers than nature, which can lead to options women will ‘civilize’ the workplace, but
and such. This section draws heavily for cultural change. that there is no proof either that this works
from this reference. The highly male-dominated in practice nor that women want this
In consideration that women’s workplaces, is often designed to responsibility. We need to start realising
participation and gender equity is a favour those who behave in ‘hyper- that women are not the problem in the
precondition for achieving the best masculine’ ways. For that reason, mining industry; and ‘woman’ is not the
development outcomes, some extractives research has shown that women in solution. If we really want to see changes
industries companies have committed to mining ‘often consciously make an in a gender culture of a workplace where
integrating gender equality, inclusion, effort to not act like girls when on most of the employees are men, we need
and women’s economic empowerment site’ and women managers in mining to do some work with these men and with

the concept of masculinity. A key observation from this webinar Conclusion
is that some countries (South Africa) Indonesia’s formal mining sector
Women in mining groups are focussed on more basic issues of would appear to be well aware of the
There are some 70- 100 WIM violence and health in the formal mining growing participation of women in
organizations in 50 countries, each with sector. Other countries (Australia) have mining. The digitizing trend in mining
different priorities, capabilities and moved to a more mature mining industry is opening up more spaces that allow
culture settings. These groups mostly working environment, and focus on for equal opportunities for men and
provide a “sharing” platform, from encouraging greater participation women. Traditional male dominance
which a gender sensitive movement of women to all parts of the mining continues in specific sites, and overall
to grow the industry can arise. These industry work force. Indonesia was not low participation by women in the mining
discussion groups take an interest in speaking at this webinar, but clearly industry is both a national and global
formal and informal mining, and the would appear to identify more towards a situation. There is a need for ongoing
social impact on local communities. mature mining sector. activity of regulatory bodies and NGO’s
On the 15th October 2020, a webinar A 2019 Indonesian Women In to promote gender diversity and inclusion.
was hosted by the UNECS/SED for Mining and Energy (WIME) discussion The new mining law 3/2020 places
“Women in Mining”. The United event in Jakarta found that the forefront responsibility for formal and small-scale
Nations Economic Commission for of gender awareness and action in mining under the supervision of the
Europe / Sustainable Energy Division Indonesia was coming from the major central Mines Department. Improving
webinar was undertaken in support / global mining companies. Various gender awareness and the “He for
of a joint program with the World government bodies (National / Local) She” programs in the small scale and
Bank on “coordination to accelerate are barely playing a catch-up role for the informal mining sector will be an
positive impact for women in mining”. women in mining. ongoing challenge.

Issue : 014 | 30 November 2020
&MINERALS
Highlight
Illegal Coal,
Illegally Legal
Coal Price | Price Forecast 2021
Coal Production | Arutmin IUPK
Indonesia Coal Export | Covid-19 and the Coal Diplomacy
Domestic Coal Demand | Manufacture and Business indexes
Infrastructure | No Jhonlin Export
82
Mine Accident ILLEGAL COAL,
ILLEGALLY LEGAL
PT Index Komoditas Indonesia (IKI) noted that in
October 2020 there was an accident at a mine in Talang
Lalan Village, Muara Enim Regency, South Sumatra
Province, where a landslide buried a traditional mine
and killed 11 workers who were developing a hauling
road for the mine. The local police said based on its
investigation, the mining activity was illegal as it has
no mining license, and the police have determined
three suspects in the incident, all of whom are the
surviving mine workers. The head of Talang Lalan
village said illegal mining activities in the village have
occurred since the past seven years with majority
of the workers come from other provinces mostly
Lampung province, and they work in land belonging
to local people. The village head also said that the
miners are using very simple equipment and with one
worker able to produce 40.0 Kg of coal per day, valued
at around IDR 60,000 – 80,000 by the collectors. He
also claimed that he has tried several times to close
the illegal mining activities but without success as the
local people also need income.
Picture 1 The mine Picture 2. The victims
Muara Enim police department
83
ILLEGAL COAL, Governor of South Sumatra, Herman Deru in his
ILLEGALLY LEGAL response about the accident said that the accident
happened inside the concession of state-owned coal
miner PTBA, which is under the supervision of the
central government’s Ministry of Energy and Mineral
Resources (ESDM). He said he will discuss the illegal
mining issue with the central government, as the
governor opposed illegal coal mining activities in the
province, claiming that such activities do not contribute
to the local government’s coffer. He added that since
last year the South Sumatra government has set up
a task force to crack down the illegal coal mining
activities, but so far has yet to be successful as the
illegal mining activities are done secretly. Meanwhile,
the local ESDM office in South Sumatra said in 2019 it
estimated that there were 33 locations in Muara Enim
regency where suspected illegal mining activities
were being carried out, and the number has increased
to 55 locations in 2020, and the local ESDM office
also said that since 2019 the province has formed a
taskforce to eradicate these activities but has yet to
be successful. It added that in April 2020 Minister of
ESDM has sent a letter to the National Police chief to
close illegal mining activities in the province but until
today there have been no actions from the police.
Meanwhile, the former governor of South Sumatra

who is now a member of the House of Representatives
(DPR), Alex Nordin said the illegal mining activities
in South Sumatra have occurred for years, and it’s
being done openly and known by all government
departments in the province, and he believes that
the recent rise in illegal mining activities happened
due to negligence from the regency and provincial
governments. If the illegal mining activities are not put
to an end it will cause more casualties to the local
people in the future. Alex Nordin also explained that
the illegal mining activities have an integrated supply
84
chain system from upstream to downstream, and the ILLEGAL COAL,
majority of the illegal coal output are transported to ILLEGALLY LEGAL
ports in Lampung province, and from there the coal
will be loaded onto barges and shipped to domestic
buyers in West Java.
Herman Deru opined that the illegal miners could be

also fostered by the government to become partner
for PTBA in the future, and he requested that the
matter related to illegal mining activities could be also
mentioned in government regulation currently being
drafted by the central government. Director General
of Coal and Mineral at ESDM, Ridwan Djamluddin in
responding to the aforementioned accident said the
ESDM is currently preparing a concept that would
allow the illegal miners to get license for their mining
activities under the supervision of local government-
owned company and or local communities in a
bid provide more jobs to local people. However,
he also demanded these miners to operate with
safety standard as determined and regulated by the
government as the government is responsible not only
for providing jobs but also to protect the environment
from mining activities that are not in accordance with
the regulations.
Report from other provinces
IKI also noticed that during the same month, a number

of coal-producing provinces also reported about illegal
mining activities such as in South Kalimantan where
the provincial government has reported to the local
police about illegal mining activities occurring within
the concession owned by Antang Gunung Meratus
(AGM). The local government said that its report
was based on its finding that there were some trails
of mine excavation inside the AGM concession, but
yet to be exploited by AGM. AGM also said that from
85
ILLEGAL COAL, February – May 2020 there were 16 cases of illegal
ILLEGALLY LEGAL mining activities happening in its concession and all of
the cases have been reported to the police. IKI found
news reports which mentioned that Illegal mining
activities also occurred in Sebulu Modern village of
East Kalimantan, and the news reports also said that
the national police have arrested a person as suspect
responsible for the illegal activities. Meanwhile, a
village head said that the illegal mining activities has
occurred for long time in several locations within the
village’s forest areas.
About illegal mining activities
Indonesia is blessed with various types of mining

commodities including energy, minerals, stones,
and sands with huge reserves compared to other
countries, but the resources have not been properly
managed by the government for the welfare of the
people as mandated by the Indonesian Constitution.
Based on IKI’s experiences, we found many local
people feel that they have not been involved in the
mining activities in their respective areas. This is one
of the reasons which has caused rapid growth in illegal
mining activities in every province in Indonesia. In this
report, IKI will limit the discussion to illegal mining in
the coal sector.
The government has defined illegal mining as mining

business which is carried out by an individual, a
group of people, or a company whose operational
activities do not have a permit from the government in
accordance with the prevailing law and regulation. In
IKI’s experiences we found that there are two common
types of illegal mining activities in Indonesia:
1. Mining activities carried out illegally inside a mine

concession legally owned by a company, such as
86
the above cases occurring within the concessions of ILLEGAL COAL,
PTBA and AGM. ILLEGALLY LEGAL
2. Mining activities done illegally outside mining areas

(WP) such as mining activities in palm oil or rubber
concessions; mining activities in protected forest
areas such as those occurring in protected forest
areas in East Kalimantan; and mining activities in
the residential zones which have happened lately in
several areas in Kalimantan.
Chart 1 illegal mine location in legal mines
Source: ESDM
IKI noticed that the ESDM has released the locations

of illegal mining activities occurring in mining
concessions owned by other companies as shown in
the chart 1 above. ESDM explains that in 2019 it is
estimated that illegal mining activities covered a total
area of 238 hectares within CCOW’s concessions,
with the largest occurred in Gerbang Daya Mandiri,
Antang Gunung Meratus and Arutmin concessions,
respectively covering an area of 64.0 Ha, 60.0 Ha and
87
ILLEGAL COAL, 49.0 Ha. Meanwhile, as per ESDM data only 25.0 Ha
ILLEGALLY LEGAL of PTBA’s concession area were used by illegal miners.
The South Kalimantan ESDM office said that in 2019
there were 50 illegal mining locations within mining
concession areas in South Kalimantan, of which the
majority are located in Tanah Laut, Tanah Bumbu, and
Hulu Sungai Selatan regencies. The office said it had
reported the findings to the police.
PTBA said that in 2019 there were 55 illegal mining

locations within in its concession and the illegal mining
activities were mostly done through open pit and
or underground by using shovels and sacks. PTBA
said that the coal output of the illegal miners was
transported to collectors by using motorcycles which
was then transported via trucks to the customers.
PTBA also said the company has done several
actions to stop the illegal mining activities such as
by implementing joint surveys with the police to the
suspected areas, monitoring its concession areas by
using drones, make signs about its mine concession
areas and sanctions for any illegal activities, closing
hauling road to the illegal mine location, and also
reporting to ESDM regarding illegal mining activities
in its concession.
The Ministry of Environment and Forestry said based

on its findings there are more than 8,600 illegal mining
locations in Indonesia with areas of 500,000 hectares,
and with 5% of the total concession or around 25,000
hectares doing illegal coal mining activities or 125
times bigger then ESDM claims. The Ministry of
Environment estimated the total government losses
because of illegal mining activities at around IDR 40.0
trillion per year excluding losses due to environmental
damage as the illegal miners are not carrying out
reclamation of the ex-mines. In response to this
report, ESDM said that illegal mining activities outside
88
mining concession (WP) areas are difficult to be ILLEGAL COAL,
handled solely by ESDM due to its limited budget and ILLEGALLY LEGAL
personnel. Therefore, ESDM requests this matter to
be handled together with other ministries.
The Ombudsman said there are three major reasons

which have driven the rampant illegal mining activities,
namely the government’s mistake in determining
the people’s mining areas (WPR/IPR), government
disobedience in implementation of obligation
for the people mining licenses (IPR), and weak
government supervision on illegal mining activities.
The Ombudsman said the increase in illegal mining
activities happened because the WPR/IPR mining
areas which are determined by the government do
not have adequate coal reserves to be mined which
then prompted the people do mining activities outside
their WPR/IPR concession areas, and these illegal
mining activities have grown significantly as there has
been no control from the government especially local
government. The Ombudsman also said based on its
investigation, it suspects that government institutions
are also involved in illegal mining activities.
89
ILLEGAL COAL, Moeldoko, former commander of the Indonesian Army
ILLEGALLY LEGAL and now serves as the Head of Presidential Staff, agrees
with the Ombudsman statement, suggesting for the
Corruption Eradication Commission (KPK) to be involved
again in the supervision of illegal mining activities.
Moeldoko also made a very interesting statement as IKI
quoted below,
I (Moeldoko) think we (the government) know

about the situation (illegal mining), we know
the locations (of illegal mines), we know the
companies, we know the persons, but we pretend
not knowing and this is our major problem.
How It’s Working
The mining advocacy network (Jatam) said that the

illegal miners do not have the required licenses and
not pay financial obligation to the government, but it
has a neatly structured operating system starting from
the determination of mine location, coal transportation
up to selling the coal to export and domestic markets,
and these activities involve many parties. Jatam pointed
out as an example that in East Kalimantan province, the
determination of the illegal mine locations will involve
people who knows or have experience about the coal
deposits; they could be ex-employees, ex-exploration
officials, etc. Jatam also suspects that the illegal coal
output is usually transported to a special port to be mixed
90
with the legal ones. Another way of transporting the ILLEGAL COAL,
illegal coal to buyers is by using containers for disguise, ILLEGALLY LEGAL
which leads Jatam to conclude that port management,
surveyor companies and also the buyers are involved
in the illegal mining operations.
IKI Comments
IKI found that there are some perceptions which

generalize that IPR and illegal mines are the same,
such as seen from the Ombudsman statement above
which may not be correct. IKI also found there
are some perceptions that the illegal miners have
always used traditional equipment in carrying out
their activities such as seen in the PTBA statement
above which may not be wrong, but could cause
misleading picture about how big they actually are.
Hanan Nugroho from Bappenas (National Planning
and Development Agency) in his research said that
illegal mine in Indonesia has been known since long
time ago and has increased rapidly after 1998 when
the central government introduced autonomy power
to the local governments including autonomy in the
mining sector, which led to the rampant issuance of
new mining licenses by the local governments. IKI
remembered that in 2012, the ESDM said there were
around 10,000 licenses in coal and minerals sectors
which had been issued by the local governments, of
which around half were categorized as licenses with
problems. IKI remembered there was also a statement
from central government which said the mining
licenses which had been issued by local governments
in a Kalimantan province covered combined mining
91
ILLEGAL COAL, concession areas that are larger than the total land
ILLEGALLY LEGAL area of the province itself. This statement can be
used as confirmation of Ombudsman’s and Jatam’s
statements that the illegal mining activities involved
various parties including businessman, societies, and
the government itself.
Pict 2 Illegal longwall in Arutmin concession
Source: IKI
IKI remembers there are plenty of actions and policies

that have been been issued by ESDM in order to stop/
reduce the illegal mining activities such as carrying out
investigation on some mining activities, moratorium of
mining licenses, obligation on “Clean and Clear” IUPs,
controlling diesel fuel sales, tight restriction on special
port activities, and many more. In IKI’s opinion these
policies have been successful to limit the growth of
illegal mining activities in the past. However, based on
the Ombudsman statement above, IKI concludes that
the illegal mining activities are rising again in 2020, and
based on the statement of one ministry in Indonesia,
92
IKI then calculated that there are around 20.0 Mt ILLEGAL COAL,
of illegal coal produced in Indonesia per year. IKI’s ILLEGALLY LEGAL
calculation about this illegal coal volume seems not far
from the actual figure as IKI remembers that last year
one of the government institutions in a discussion with
IKI said that there was huge gap on coal sales figure
between IKI’s calculation and their calculation and IKI
have explained to them the reasons for the difference.
IKI also thinks that the huge illegal coal sales volume
can also indicate that the illegal coal miners are not
using traditional equipment in their operations, which
then triggers another question how can they sell
such huge amount of coal so easily?
Illegaly “Legal”
IKI believes that although the government has

introduced the clean and clear IUP requirement, but
IKI found that there are plenty of registered IUPs which
are not as “clean and clear” as what the government
has wanted as IKI believes that ESDM doesn’t have
any record of these mines. IKI thinks that these
mines later “act” as the issuers of documents which
are needed to make the illegal coal to become legal
and these changes occurred before the coal gets to
the ports as ESDM has made tight restriction of coal
movement in the ports as shown on the chart 2 below.
Chart 2 flows of the illegal coal
Source: IKI analysis
93
ILLEGAL COAL, IKI’s statement about the process of coal legalization
ILLEGALLY LEGAL is also confirmed by the fact that there were no news
reports ever mentioning about illegal coal seized at the
ports, or news reports mentioning about coal shipment
seized by the customs because of its legalities. IKI’s
conclusion above also answers the question why the
South Sumatra provincial government has failed to reduce
illegal mining activities in the province although they have
made coordination with the port authority in neighboring
Lampung province as IKI quoted above.
IKI found an interesting statement from Moeldoko

who said that the government knows about the flows
of the illegal activities as well as the “actors.” Then
why the government has not made any action?
IKI has learned that every time ESDM and the National
Police plan to launch investigation into illegal mining
activities in an area in Kalimantan, all coal players in the
area would always get the information several days before
the d-date, and they would do needful action to cover their
works like stopping the mine activities and blockading
road access to the mine with stones, woods, and other
materials in order to create impression that there were no
mining activities occurring beyond the blockaded roads.
The same blockade was also made at a road on illegal
longwall of one of the CCOW holders in Indonesia as shown
on the picture 2 above. However, since the government
needs to expose its success in dealing with illegal mining
activities to the media then “a small chicken” must be
sacrificed by the coal players in the areas. IKI think this
system has been copied by the coal players in Sumatra
also, and IKI also noticed the same action was made by
the local police in South Sumatra in apprehending the
mine workers as quoted and bolded above. IKI found
an interesting statement from the government including
Moeldoko which mentioned that these illegal miners are
not paying any financial obligation to the government
94
such royalties, which then leaves a question how then ILLEGAL COAL,
these illegal coal can be changed to legal if the miners ILLEGALLY LEGAL
are not paying royalties to the government? And how
come that these illegal coals have never been seized
by the customs in Indonesian and also customs in the
destination countries if they don’t have complete and
legal documents about its “legalities”? IKI believes all
the question marks in this paragraph can be used to
answer IKI’s question about Moeldoko’s statement as
underlined and bolded above.
IKI Conclusion
Illegal mine will always become a problem for the

government not only Indonesia government but also
government in other countries. And IKI believes
ESDM has done lots of great policies in order to
reduce and limit illegal mining activities but has yet
to be successful due to less commitment from the
government itself, and this happens as coal and
minerals are not only considered as vital commodities
by the government but are also used as political
bargaining tool by the government to maintain its
popularities as had happened in the past, and which
has been happened recently with the issuance of the
new mining law, and will also happen again in the
future. IKI is still waiting what will be the government
policy in curbing the illegal mining activities as local
government role in the mineral and coal sectors has
been removed, and what will be the government policy
in controlling mining activities after the removal of local
government authority as IKI knows the government
had failed in the past and will also fail in the future
as it plans to ease issuance of business licenses for
industries including mining licenses as stated in the
new Omnibus law.
95
SHARESPERFORMANCE
IDX-Listed coal miners shares performance
NOVEMBER 2020 DECEMBER 2020

No Company
24 26 30 2 4 8 11 15 17 21 23
1 ADARO ENERGY Tbk (ADRO) 1,300 1,360 1,390 1,390 1,435 1,545 1,535 1,530 1,490 1,555 1,490
2 ATLAS RESOURCES Tbk (ARII) 476 476 462 448 414 412 402 408 406 392 390
3 BAYAN RESOURCES Tbk (BYAN) 14,500 14,400 15,500 15,500 15,750 15,800 15,850 14,800 14,900 14,525 15,500
4 BORNEO LUMBUNG ENERGI & METAL Tbk (BORN)
5 BUMI RESOURCES Tbk (BUMI) 57 76 67 59 68 73 69 70 83 78 72
6 GOLEN ENERGY MINES Tbk (GEMS) 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550
7 HARUM ENERGY Tbk (HRUM) 2,300 2,290 2,780 2,960 2,800 2,980 2,940 2,950 3,230 3,200 3,100
8 INDIKA ENERGY Tbk (INDY) 1,380 1,485 1,710 1,745 1,755 1,930 1,850 1,970 1,920 1,990 1,835
9 INDO TAMBANGRAYA MEGAH Tbk (ITMG) 10,950 11,500 13,100 14,875 14,950 14,825 14,675 15,225 14,725 15,075 14,250
10 RESOURCES ALAM INDONESIA Tbk (KKGI)
11 TAMBANG BATUBARA BUKIT ASAM (Persero) Tbk (PTBA) 2,280 2,360 2,360 2,450 2,480 2,820 2,810 3,070 3,040 3,040 2,820
12 ALFA ENERGI INVESTAMA TBK (FIRE) 372 374 448 700 1,025 1,280 1,115 970 1,130 1,320 1,320
ADARO ENERGY Tbk (ADRO) ATLAS RESOURCES Tbk (ARII) BAYAN RESOURCES Tbk (BYAN)
1,800 500 16,000
1,600 450
1,400 400 15,500
1,200 350
300 15,000
1,000
Price (Rp)
250
800
200 14,500
600 150
400 100 14,000
200 50
0 0 13,500
26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23
Date (Nov - Dec 20) ADARO ENERGY Tbk (ADRO) Date (Nov - Dec 20) ATLAS RESOURCES Tbk (ARII) Date (Nov - Dec 20) BAYAN RESOURCES Tbk (BYAN)
BORNEO LUMBUNG ENERGI & METAL Tbk (BORN) BUMI RESOURCES Tbk (BUMI) GOLEN ENERGY MINES Tbk (GEMS)
1 90 3,000
80
1 2,500
70
1 60 2,000
50
Price (Rp)
1 1,500
40
0 30 1,000
20
0 500
10
0 0 0
26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23
Date (Nov - Dec 20) BORNEO LUMBUNG ENERGI & METAL Tbk (BORN) Date (Nov - Dec 20) BUMI RESOURCES Tbk (BUMI) Date (Nov - Dec 20) GOLDEN ENERGY MINES Tbk (GEMS)
HARUM ENERGY Tbk (HRUM) INDIKA ENERGY Tbk (INDY) INDO TAMBANGRAYA MEGAH Tbk (ITMG)
3,500 2,500 18,000
3,000 16,000
2,000 14,000
2,500
12,000
2,000 1,500
10,000
Price (Rp)
1,500 8,000
1,000
6,000
1,000
500 4,000
500 2,000
0 0 0
26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23
Date (Nov - Dec 20) HARUM ENERGY Tbk (HRUM) Date (Nov - Dec 20) INDIKA ENERGY Tbk (INDY) Date (Nov - Dec 20) INDO TAMBANGRAYA MEGAH Tbk (ITMG)
RESOURCES ALAM INDONESIA Tbk (KKGI) TAMBANG BATUBARA BUKIT ASAM Tbk (PTBA) ALFA ENERGI INVESTAMA TBK (FIRE)
1 3,500 1,400
1 3,000 1,200
2,500 1,000
1
2,000 800
Price (Rp)
1
1,500 600
0
1,000 400
0 500 200
0 0 0
26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23 26 26 30 2 4 8 11 15 17 21 23
Date (Nov - Dec 20) RESOURCES ALAM INDONESIA Tbk Date (Nov - Dec 20) TAMBANG BATUBARA BUKIT ASAM Tbk Date (Nov - Dec 20) ALFA ENERGI INVESTAMA TBK (FIRE)


(Petromindo, Dec 2020) MAGAZINE - Coal Asia Vol 121 - Dec 29 2020 To Jan 29 2021 (7,14 MB)

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(Petromindo, Dec 2020) MAGAZINE - Coal Asia Vol 121 - Dec 29 2020 To Jan 29 2021 (7,14 MB)

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TRIPUTRA ENERGI MEGATARA:

EMERGING ENERGY SOLUTION

2 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

Battery electric vehicle (BEV) development Energi Megatara:

4 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

76 ANALYSIS | Ian Wollff

82 Indonesian Coal Report

6 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

8 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

2021 priority, coal production control

10 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 11

12 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

New approach to construction

14 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 15

16 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 17

(e) suspension of business license; and

The definition of “Buildings” is

includes energy, infrastructure, mining

18 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 19

unfortunate that GR 22/2020 does not

20 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

Ministry of Public Works & Housing types of Building Failure. However,

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 21

Golden Eagle mulls coal

Bayan secures $133 loan

22 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 23

Delta Dunia plans higher

to be able to grab new contracts next year.

24 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

IEEFA: China’s ban is less of a threat to Australia’s

26 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

and its clients are still assessing coal

BUMA signs contract

both existing and new potential customers

28 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 29

Indika to apply for renewal of Kideco’s

30 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 31

32 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

low. “While Indonesia deals with heavy

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 33

to Indika, includes the operations of the

China formalizes cut of

according to the report.

34 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 35

PTBA plans mine-mouth

the balance. The power plant will consume

36 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021

COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021 37

38 COAL ASIA DECEMBER 29, 2020 - JANUARY 29, 2021