Jakarta, CNBC Indonesia – The government is targeting trials of the mining company coal contribution scheme through the Management Agency Partners (MIP) of the coal compensation fund (DKB) to start running in January 2024.
This was done as an effort by the government to overcome the disparity in coal prices on the international market or export prices with domestic selling prices or Domestic Market Obligation (DMO).
Responding to this, Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia hopes that the coal compensation fund collection scheme through the MIP scheme will not become an additional burden for coal miners.
“Moreover, MIP tariff payments are paid before shipment, the same as royalties which are also paid before shipment, while we don’t yet know the details of the distribution scheme,” said Hendra to CNBC Indonesia, quoted Thursday (23/11/2023).
Apart from that, according to Hendra, companies are also having difficulty managing cash flow. The reason is that 30% of export proceeds (DHE) are also held for 3 months in domestic banks.
“So if this MIP is implemented, companies will have increasingly difficulty managing cash flow,” he said.
As is known, the MIP institution itself will later be tasked with collecting fees from coal entrepreneurs to cover the difference between the market price and the price for the domestic market obligation (DMO) of US$ 70 per ton for PLN.
Previously, the Ministry of Energy and Mineral Resources (ESDM) revealed that the formation of an institution tasked with collecting mining company coal fees, namely the Management Agency Partners (MIP), was almost final.
Minister of Energy and Mineral Resources Arifin Tasrif said that partner agencies managing the coal compensation fund (DKB) are currently still waiting for the process of finalizing the draft Presidential Regulation (Perpres). Meanwhile, the Ministry of Energy and Mineral Resources and the Ministry of BUMN themselves have implemented initialization in the draft Presidential Decree.
“Currently the draft Presidential Decree is in the finalization stage. The Ministry of Energy and Mineral Resources and the Ministry of BUMN have carried out initialing and there is new input from the Coordinating Minister for Maritime Affairs and Fisheries which we are coordinating. Today we have submitted the final input to the State Secretariat,” he said at a Joint Working Meeting with Commission VII DPR RI , Tuesday (21/11/2023).
Meanwhile, derivative regulations and supporting applications are also being prepared. For example, such as the Minister of Finance Regulation (PMK) which regulates rates for coal compensation funds, Ministerial Regulations (Permen), Ministerial Decrees (Kepmen), and Technical Instructions (Juknis) on procedures for collecting and distributing coal compensation funds.
“And the revision of Minister of Energy and Mineral Resources Decree Number 58 of 2022 regarding the selling price of coal is US$ 90 per ton for raw materials for fuel for the domestic cement and fertilizer industry in accordance with the contents of the Presidential Decree,” he said.
Therefore, according to Arifin, support from other Ministries/Institutions is needed to accelerate the completion of PMK from coal compensation funds. Next, completion of the e-DKB application system including network and security and acceleration of development of metallurgical type coal value added warnings.
“If these points can be completed, trials and socialization of MIP implementation to business actors can be carried out in December 2023 to January 1 2024 and it can be operational,” he said.
Arifin said that the DKB manager as MIP PNBP is the body or institution appointed by the Ministry of Energy and Mineral Resources which manages DKB, namely the Association of State-Owned Banks (Himbara).
[Gambas:Video CNBC]
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