BUMN Companies Will Be Appointed to Manage Coal Fees

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BUMN Companies Will Be Appointed to Manage Coal Fees

The government, in this case the Ministry of Energy and Mineral Resources (ESDM) is planning the establishment of a coal fee collection management body. The agency will collect contributions from domestic coal mining companies.
Previously, the government itself had discussed the management agency through the Coal Fee Public Service Agency (BLU). However, it is rumored that the concept and name of the Coal BLU will be changed to Partner Government Agencies (MIP).

Through MIP, it is reported that the government wants state-owned companies to become the governing body for coal fees. “It seems that MIP and (its controllers) will lead to SOEs. Wait for the game date, it will be published in the near future,” explained a CNBC Indonesia source within the Ministry of Energy and Mineral Resources.

Just so you know, the purpose of establishing a coal fee management body is this: the government aims to release the domestic coal price which is currently set at US$ 70 per ton back to the market mechanism.

Later, by releasing the price to the market mechanism, the managing body will collect coal sales fees according to the price gap between the domestic benchmark price and the market price.

The general chairman of the Association of Indonesian Mining Experts (Perhapi), Rizal Kasli, also said this, that it is known that the Minister of Energy and Mineral Resources Arifin Tasrif will appoint a BBUMN as MIP.

However, instead of appointing SOEs as the agency that collects coal dues from mining companies, he suggested that the government should appoint the Directorate General of Minerals and Coal with its online system as the party responsible for collecting these funds.

“To be deposited and reported online to the government. The deposit mechanism is suggested through the PNBP mechanism which is directly deposited into the state treasury,” he told CNBC Indonesia, Tuesday (10/1/2023).

This is considering that according to Rizal, the funds to be collected can be above Rp. 100 trillion per year. So that a better management mechanism for collection, deposit and disbursement/distribution of funds is needed.

Executive Director of the Indonesian Coal Mining Association Hendra Sinadia assessed that actually the contents of the BLU and MIP are still the same. However, the difference is that private companies can also manage MIP.

“Yes, private parties can also become MIP, because after all, the funds collected are from business actors and returned to business actors,” he told CNBC Indonesia, Wednesday (11/1/2023).

In his opinion, the function of the coal BLU, which is planned to be turned into MIP, is only to collect coal dues. He said MIP was not to accumulate funds. “So the BLU’s function is only to collect and channel, not to accumulate funds,” he explained.

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