Akal-akalan untuk menaikkan harga listrik

As this article was being read by the US SEC (Securities and Exchange Commission) on 14 July 2017 02.59.18 Jakarta time, some update was deemed to be a necessary.


The fruit of the communist reigning in Indonesia
by S3ra St Rajo Ali
Jakarta, 25 May 2017

The blatant plan of Jusuf Kalla to build and operate additional power plants with a capacity of 35 GW finally came to an end. He is doomed to fail once again in his second term as the Vice President of Indonesia. He first failed to build additional 10 GW power plants during his first term as the Vice President of Indonesia. Ooops, he did it again.

His preposterous ambitions have been purely based on his long-time purposes as a man-in-the-middle (MITM), the broker, making people broke when dealing with him. This type of people is notorious to take advantages and reap the fruits without having any significant assets to put as a bet. They won’t risk anything but to play safe and secure for themselves.

Per unit larger consumption and demand for electricity comes from the industries, in relatively some confined and limited areas. Consumption growth depends highly on what markets value and deem to be profitable and less riskier.

In other words, investors shall seek refuge and force the government to subsidise their failing pet projects. As has been the case, as coal price has never been good way back then, coal miners have been begging, paying, preying the Indonesian government to buy their coal, not physically, but in a more delicate term, the value added items.

There are names that you can put on. Mine mouth power plants, coal-fired power plants, combined-cycle power plants, and so on.

Who shall pay the price of the added-value of coal? Indonesian people.

Indonesian people, the 250 million people, eat a much larger piece of power generation in a larger, diverse, distributed regions. The power distribution expenses must be paid by the Indonesian people.

Starting the fifth month of 2017, the price of electricity has been raised more than twice, compared to the price as of December 2016. In December 2016, the electricity price was about Rp 600 per KWH. In May 2017, the electricity price was about Rp 1,400 per KWH. There you go.

PLN, the state-owned power distributing company, can and will never ever be profitable. The profits must go directly to the coffers of power generating companies, where the board of management of PLN, from head to toe, from the central headquarter to remote territories, has a major stake of profit generation for themselves.

What a might.

The Jokowi presidency has taken its toll. The Indonesian people has to pay the price, much higher.

What a wiser.

The fruit of the communist reigning in Indonesia. The capitalising communist.


http://www.reuters.com/article/indonesia-power-idUSJ9N17P00N
Basic Materials | Fri May 13, 2016 | 2:02am EDT
Indonesia to review 35 GW power program amid investor doubts

May 13 Indonesian President Joko Widodo has called for a review of the country’s ambitious program to develop 35 gigawatts of new power stations by 2019, the energy minister said on Friday.

“He emphasised that there should be a thorough review while the deadline is still a long way off, so that we don’t encounter obstacles when we’re already halfway,” Minister Sudirman Said told reporters.

Said was referring to reviews of aspects ranging from the tender process to financing and management by state electricity utility Perusahaan Listrik Negara (PLN).

“Investors and businesspeople have started to question if we can finish this or not,” Said added.

The program aims to build nearly 300 power plants, most of them coal-fired, in a bid to overcome Indonesia’s endemic shortages of electricity and fuel growth. (Reporting by Jakarta bureau; Writing by Fergus Jensen; Editing by Clarence Fernandez)


Read the report of “Coal Business in Indonesia, April 2017”, in here: https://issuu.com/the1uploader/docs/coal_business_in_indonesia__april_2


http://www.wpxi.com/news/business/china-shuts-only-undersea-coal-mine-amid-production-rebound/525902997
China shuts only undersea coal mine amid production rebound
Updated: May 24, 2017 – 3:02 AM

BEIJING (AP) – China is shutting down its only undersea coal mine, state-run newspapers reported Wednesday, as the government struggles to rein in rising production that threatens to frustrate a planned shift to cleaner-burning fuels.

The Beizao coal mine in Shandong Province will shut down in October and its 1,580 employees will be offered new jobs, the Global Times and others reported.

China is the world’s largest coal consumer. Pollution from the fuel is a major contributor to smog that blankets many Chinese cities.

Government officials announced plans to shutter 1,000 mines in 2016. But data from the National Bureau of Statistics shows coal is rebounding this year with production up 9.9 percent in April versus a year earlier.

The Beizao mine produced coal from underground and underwater areas near the coastal city of Longkou, according to the official Xinhua news agency.

The closure is part of a government effort to phase out less productive mines, said Li Gongjian, the mine’s manager. Sea mining costs three times more than mining on land, according to Xinhua.

Japan, Britain and Canada also have operated undersea coal mines.

Copyright 2017 The Associated Press. All rights reserved.


http://www.reuters.com/article/coal-asia-coaltrans-idUSL4N1IG0IL
UPDATE 1-Indonesia coal output seen growing up to 5 pct this year and next -industry association
By Fergus Jensen
Sun May 14, 2017 | 12:16pm EDT

May 14 Indonesia, the world’s top thermal coal exporter, could increase production of the fuel used in power stations by 5 percent in 2017 and 2018, the country’s leading coal industry association said on Sunday.

Indonesia’s coal industry has benefited from higher prices this year after a downturn in 2015 and 2016 put many small producers out of business, though recent price declines could signal more difficulties ahead.

“For production, I would say flat to up 5 percent,” Indonesian Coal Mining Association Chairman Pandu Sjahrir said on the sidelines of the Coaltrans Asia conference in Bali, referring to 2017 and 2018 output without detailing numbers.

In October Sjahrir said Indonesia’s coal production could reach 460 million tonnes in 2017, up from an estimated 440 million tonnes last year, because of improving prices.

However, output from Indonesia is likely be limited as many of the country’s largest producers divert capital towards power station projects rather than expansions, Sjahrir added.

“I don’t see much growth in coal output for the next three to four years,” he said (Editing by David Goodman)


https://news.mongabay.com/2017/05/facing-oversupply-indonesia-scales-back-its-coal-based-electricity-plan/
Mongabay Series: Southeast Asian infrastructure, Indonesian coal
Facing oversupply, Indonesia scales back its coal-based electricity plan
11 May 2017 / Lucy EJ Woods
Article published by Isabel Esterman on 2017-05-11.

Around 9,000-megawatts-worth of new power plants have been put on hold, out of a planned 35,000 megawatts.
Facing oversupply, Indonesia scales back its coal-based electricity plan

In 2014, Indonesian President Joko Widodo announced plans to generate an additional 35,000 megawatts of electricity by 2019, much of it to be fueled by coal.
Last month, energy minister Ignasius Jonan said only 15,000 additional megawatts will be required by 2019.
Jonan cited lower-than-expected economic growth, leading to lower energy demand.

The Indonesian government appears to be backtracking on its aggressive 35,000-megawatt, coal-centric energy development plan.

The ambitious 35,000 megawatts of new electricity generation projects were to be completed by 2019, according to a plan announced by President Joko Widodo in 2014. However, only 15,000 megawatts will be required by then, the Minister of Energy and Mineral Resources, Ignasius Jonan, said last month.

Jonan attributed the U-turn on energy development goals to setbacks to the government’s equally ambitious goal of achieving upwards of 7 percent annual economic growth.

According to the World Bank, Indonesia’s economy will grow 5.2 percent in 2017, up from 5 percent in 2016. While 5.2 percent is still high by global standards, it is much lower than the government’s target.

Back in 2014 when Widodo announced the 35,000-megawatt plan, the government was planning for “very optimistic economic growth,” said Dwi Sawung, energy campaigner at Friends of the Earth Indonesia.

With lower economic growth than expected, there will be less industry, and less energy required, leaving a surplus of power. At current development rates, there would be a 5,000-megawatt oversupply to the Java-Bali grid by 2024, said Jonan.


Thousands of people from communities impacted by coal mines or coal-fired power plants rallied in Jakarta in March. Photo by Zamzami/Mongabay.

The 35,000-megawatt coal-based plan was “unnecessary,” and a “big surplus,” said Sawung.

To mitigate the oversupply, some coal power plant developments in Indonesia will be canceled, and an estimated 9,000 megawatts of projects have been put on hold until 2024. Out of the proposed 35,000 megawatts, around 20,000 megawatts were expected to be coal.

Supangkat Iwan, the procurement director for the state-owned electricity supplier PLN said the coal reduction will include scrapping power plant Java 5. The 2,000-megawatt plant would have been located in West Java, and built by PLN subsidiary, PT Pembangkit Jawa-Bali. Altogether, PLN is to scrap 9,000 megawatts of power purchase agreements (PPA), focusing instead on a smaller pipeline, said Iwan.

Coal power projects still going ahead include the controversial 1,000 megawatt Cirebon coal power plant which recently had its environmental permit revoked, the 2,000-megawatt expansion of Tanjung Jati which has had financers back out, and the 2,000-megawatt Batang coal power plant, which has been delayed for four years due to local protests.


A worker operates an excavator at an open pit-coal mine in Samboja, East Kalimantan, Indonesian Borneo. Photo by Kemal Jufri/Greenpeace.

The trouble with coal

For years, coal developments across Indonesia have faced protests, campaigns, lawsuits, and complaints over water and air pollution. Yet the government has steamed ahead with coal projects.

At risk from coal mining is approximately 8.6 million hectares (21.25 million acres) of Indonesia’s biodiverse and carbon-dense forests. As a 2015 report by NGO Fern found, this makes Indonesia’s forests the world’s most under threat due to coal. Indonesia’s continued pro-coal stance also calls into question its commitments to reducing carbon emissions by 29 percent from projected 2030 levels.

The 35,000-megawatt plan was “a lifeline for the coal mining sector in Indonesia,” says industry analyst Oxford Energy. It bolstered the domestic coal market and guaranteed demand as Indonesia’s two biggest coal customers, India and China drastically reduced coal imports (as part of a growing trend across the globe).

Business services company PwC estimates constructing new power plants and expanding the national grid would cost PLN over $75 billion over the next 10 years. However, PwC also reported last year that Indonesia’s coal reserves will not last more than 18 years, with coal resources on track to be depleted as early as 2033.

The coal-based energy plan would also have brought soaring numbers of early deaths from coal pollution. A Harvard University-led research study analyzed health impacts of existing and planned coal plants in Indonesia, predicting more than 24,400 premature deaths per year by 2030.

The 35,000-megawatt plan was not just coal focused, but also urban focused; around 26,000 megawatts was expected to be developed in Indonesia’s most populous island, Java, connecting to the Java-Bali grid.

While an estimated 1.6 million poor households in Indonesia do not have grid access, Java is almost fully electrified. “This electricity is not for those people without electricity access, it is for industry,” Didit Wicaksono, a coordinator at Greenpeace Indonesia has previously told Mongabay.

Due to all the impacts imposed by the 35,000-megawatt plan, environmental organizations have been pressuring foreign finance to pull out of Indonesian coal investments. Investors and businesses also began questioning the 35,000-megawatt plan, and a policy review was announced last year.


Police and security aboard a journalists’ boat as anti-coal activists unfurl banners and block the loading of coal at the Cirebon coal plant in West Java. Photo by Ardiles Rante/Greenpeace.

Changes to coal support

While it is unlikely the government will change its “pro-coal” stance, said Sawung, minister Jonan is new to the energy sector, and has said he is not just pro-coal, but pro-low prices.

Joining the Energy and Mineral Resources Ministry in October 2016, Jonan had no previous experience in the energy sector. He is also the fourth person in less than a year to be appointed as the Energy and Mineral Resources Minister in Joko Widodo’s government.

Jonan “saw the subsidies being paid for electricity were too big, with too much surplus,” explains Sawung. Now Indonesian energy policy is “all about the price.”

New power projects will go ahead and secure PPAs, as long as they are below the purchase price limit set by PLN. As of March, and until April 2018, the price limit is 983 rupiah ($0.07) per kilowatt-hour. Sawung said that because of this change in pricing regulation, as long as energy is supplied below this price, Indonesia is “open to buying energy from renewables.”

“If energy is cheaper from renewables, the government will buy it, if it is cheaper from coal and gas, they will buy from that,” said Sawung.

The current purchasing price limit is also “very low,” meaning coal companies “cannot meet this price,” said Sawung. The regulation change “makes it difficult for new coal power projects in Java to be profitable, even for the biggest coal companies.”

This trend away from coal could open up a “new opportunity” for renewables, said Sawung. Especially on small islands and rural areas, where renewable energy has been taking off successfully in Indonesia.

The delays and cancellations to coal projects under the 35,000-megawatt plan do not apply to the 3,700 megawatts of renewable energy developments. Previous plans for hydro, wind, solar and geothermal projects are still going ahead as planned.

One additional reason for the recent shift in policy away from coal, said Sawung, is the general election campaigns for 2019, which will begin next year. President Joko plans to run, and potential voters from middle-income households complain, often on social media, about high electricity prices. “This year the price has increased about four times, and the price keeps rising,” said Sawung.


A masked activist holds an anti-fossil-fuel banner outside the Bandung Administrative Court on April 19, part of a rally awaiting a court verdict on the validity of the Cirebon coal plant’s environmental permit. Photo by Donny Iqbal/Mongabay.

In response to complaints, on April 28 Jonan said electricity tariffs will be adjusted every three months, to ensure electricity prices remain affordable and to provide a climate of certainty for investment.

Jonan also said that the Energy and Mineral Resources Ministry’s new goal is to make Indonesia’s energy sector more efficient and accessible, including new policies to penalize PLN for not delivering electricity to customers.

Emphasizing the need to close what he described as a “very big natural resources management gap,” deputy minister of Energy and Mineral Resources Arcandra Tahar spoke April 25 at the University of Gadjah Mada. “As good as our plans, the gap is still wide open,” Tahar said.

Sawung agrees there is a dearth of sufficient management and organization of Indonesia’s natural resources. The government “did not do enough planning,” pushed for 35,000 megawatts “without feasibility studies” and “did not fit power plants to the conditions,” said Sawung.

“When you push for 35,000 megawatts without doing any of the studies, projects cannot operate,” said Sawung.

The government wanted to speed up projects, Sawung said. “But you have to study beforehand. Without studies, you cannot fasten [up] projects, as you don’t know what troubles there are, or what the conditions will be.”

said last month http://www.thejakartapost.com/news/2017/01/25/indonesia-only-needs-15000-mw-extra-electricity-by-2019-minister.html
said Jonan https://kumparan.com/dewi-rachmat-k/jonan-khawatir-kelebihan-pasokan-listrik-di-pulau-jawa
20,000 megawatts https://www.enerdata.net/publications/daily-energy-news/indonesia-releases-its-35-gw-power-capacity-addition-plan.html
said http://www.rambuenergy.com/2017/04/pln-calls-off-plan-to-develop-mega-power-plant-pltu-java-5/
environmental permit revoked https://news.mongabay.com/2017/04/indonesian-court-revokes-environmental-license-for-the-cirebon-coal-plant-expansion/
had financers back out https://news.mongabay.com/2017/03/japanese-singaporean-banks-finance-controversial-indonesian-coal-plant/
delayed for four years due to local protests https://news.mongabay.com/2017/01/as-construction-begins-on-javas-batang-coal-plant-a-divided-community-faces-environmental-problems/
protests, campaigns, lawsuits, and complaints over water and air pollution https://news.mongabay.com/2017/03/thousands-of-anti-coal-activists-march-in-jakarta-deliver-complaints-to-anti-graft-agency/
2015 report by NGO Fern https://news.mongabay.com/2015/12/a-forest-area-larger-than-portugal-is-currently-threatened-by-coal-mining-worldwide/
commitments https://news.mongabay.com/2016/10/pledging-to-reduce-emissions-while-expanding-its-power-grid-indonesia-walks-a-fine-line/
industry analyst Oxford Energy https://www.oxfordenergy.org/wpcms/wp-content/uploads/2016/12/The-role-of-coal-in-Southeast-Asias-power-sector-CL-4.pdf
growing trend across the globe https://news.mongabay.com/2017/02/indonesias-last-stand-for-a-coal-industry-in-peril/
PwC estimates https://www.pwc.com/id/en/publications/assets/eumpublications/newsflash/2016/pwc-indonesia-eum-newsflash-2016-59.pdf
reported http://www.reuters.com/article/indonesia-coal-idUSL4N16F4C4
Harvard University-led research study https://news.mongabay.com/2017/01/southeast-asias-coal-boom-could-cause-70000-deaths-per-year-by-2030-report-says/
estimated 1.6 million poor households in Indonesia https://news.mongabay.com/2017/02/these-indonesian-villages-are-powered-by-locally-sourced-sustainable-energy/
previously told Mongabay https://news.mongabay.com/2017/01/as-construction-begins-on-javas-batang-coal-plant-a-divided-community-faces-environmental-problems/
pressuring foreign finance to pull out of Indonesian coal investments https://news.mongabay.com/2017/02/indonesias-last-stand-for-a-coal-industry-in-peril/
last year http://www.reuters.com/article/indonesia-power-idUSJ9N17P00N
fourth person in less than a year http://www.reuters.com/article/us-indonesia-politics-energy-idUSKBN12E0H4
March https://translate.google.co.uk/translate?hl=en&sl=id&u=http://industri.bisnis.com/read/20170328/44/640824/biaya-pokok-penyediaan-pembangkit-pln&prev=search
renewable energy has been taking off https://news.mongabay.com/2017/02/these-indonesian-villages-are-powered-by-locally-sourced-sustainable-energy/
April 28 https://www.esdm.go.id/en/media-center/news-archives/jonan-my-duty-makes-energy-sector-to-be-an-efficient-sector
Arcandra Tahar spoke https://www.esdm.go.id/id/media-center/arsip-berita/pemanfaatan-sda-indonesia-harus-berasal-dari-dalam-negeri


https://www.platts.com/latest-news/coal/singapore/analysis-rising-domestic-consumption-lures-indonesian-27833971
Analysis: Rising domestic consumption lures Indonesian coal miners
Singapore (Platts)–22 May 2017 442 am EDT/842 GMT

Several Indonesian thermal coal producers are shifting their focus to the lucrative domestic space amid rising consumption, while seaborne trading appears to be losing steam at the traditionally strong export markets.

During a recently concluded industry gathering, Indonesia’s Ministry of Energy and Mineral Resources officials said that while Indonesia is planning to lower coal production in the coming years, domestic consumption is expected to surge with more coal-fired capacities being added.

Indonesia is planning a total coal production of 413 million mt in 2017, down from about 419 million mt in 2016.

While exports are expected to fall to 292 million mt this year from 308 million mt in 2016, domestic consumption is expected to rise to 121 million mt from 111 million mt in 2016.

“The domestic market continues to grow at a rate of 8 million-10 million mt per annum,” said the head of analysis at Noble Group, Rodrigo Echeverri, at the industry gathering.

Looking ahead, the Indonesian government aims to lower the total production to 400 million mt by 2019, of which 240 million mt is expected to go to the domestic market, the government officials noted.

Indonesia is planning to add 35 GW of power by 2019, with thermal-coal-fired power plants accounting for nearly 57% of it.

Coal is expected to account for more than half of Indonesia’s total power generation-mix heading into 2026, with the majority of the country’s production expected to be consumed domestically, according to industry observers.

“Bumi continues to assign priority to domestic sales and bid for long-term coal supplies in new coal-fired power capacities in Indonesia over the next two or three years,” large Indonesian miner Bumi’s director and corporate secretary Dileep Srivastava told S&P Global Platts.

Bumi has majority equity stakes in major Indonesian coal producers Kaltim Prima Coal and Arutmin. KPC and Arutmin produce steam coal with a heating value of 4,200-7,100 kcal/kg gross air dried, according to Bumi’s website.

Kaltim Prima Coal has been awarded a contract to supply 4.5 million mt of higher-grade thermal coal annually to Tanjung Jati B project units 5 and 6 in Central Jawa, Indonesia, starting 2020, Srivastava said.

He said Bumi’s domestic sales were 32.4 million mt in 2016, up from 30.9 million mt the previous year. He estimates domestic sales to rise 10%-15% year on year in 2017.

COAL MINERS DIVERSIFY

Several coal producers, including Adaro, Bumi, and Indo Tambangraya Megah, are also venturing into power generation.

Bumi’s KPC is developing three coal-fired power plants, each 18 MW, while Adaro is also developing its power projects in Central Java and South Kalimantan province.

Meanwhile, the Indonesian government is also signing agreements with several coal producers to ensure supply to various mine-mouth power generation projects.

Late last month, Adaro Energy said in its quarterly report that Indonesia accounted for 30% of its total sales, while Malaysia stood second at 15%.

“Indonesian coal producers prioritized domestic market in the quarter resulting in tightness of Indonesian supply in the seaborne market,” the company said.

Of the total sales, major seaborne cargo importers India and China accounted for only 5% and 2%, respectively, Adaro said.

While Indonesia’s total coal production in 2016 was relatively flat year on year, its exports fell 2% and supply to the domestic market jumped 11% year on year, Adaro said.

Thermal coal suppliers are seeking alternate markets amid uncertainties surrounding demand for seaborne cargoes in traditional buyers like China and India.

China’s production policy is keeping market participants on tenterhooks. Last year, China imposed production restrictions on its local mines, leading to supply tightness and a significant surge in coal prices. Later in the year, it relaxed its policy, easing supply and pulling prices lower.

Meanwhile, India is also shoring up its domestic production to cut its dependence on imports.

–Deepak Kannan, deepak.kannan@spglobal.com
–Edited by Arnab Banerjee, arnab.banerjee@spglobal.com


https://news.mongabay.com/2017/05/coal-miners-owe-the-indonesian-government-hundreds-of-millions-of-dollars/
Mongabay Series: Global Forests, Indonesian coal
Coal miners owe the Indonesian government hundreds of millions of dollars
8 May 2017 / Mongabay.com
Article published by Isabel Esterman on 2017-05-08.

Activists argue the sector’s actual economic contributions are not enough to balance out the social and environmental problems caused by coal mining.

After policies of decentralization gave regional governments more control over the mining sector, the number of permits issued exploded.
A countrywide investigation into Indonesia’s mining sector revealed that 2,522 mining permits do not fulfill clean and clear standards.
Investigations have revealed the government is owed $380 million in mining royalties.
Collecting remaining arrears proves challenging, as basic details about mining companies in arrears, including where offices are located – or if they exist at all – remain missing from government permit data.

Indonesia is now one of the world’s largest exporters of coal, an industry that contributes around four percent of the country’s gross domestic product mostly through exports to China and India. Despite its massive size, however, observers are concerned that the sector’s actual contribution to the public treasury — in the form of taxes and royalties — is not nearly enough to balance out the social and environmental impacts of coal extraction.

According to data from the Ministry of Energy and Mineral Resources, hundreds of millions of dollars in royalties and taxes owed to the government remain unpaid. The government often lacks key information it needs to collect the revenues owed to it, even down to the addresses of mining companies’ offices.


Indominco Mandiri coal mine operation in Santan Ilir village in East Kalimantan, Indonesia. Residents of downstream villages say the mine has left the Santan River too polluted to be used for drinking, bathing or irrigation. Photo by Ardiles Rante/Greenpeace.

The consequences of decentralization

Indonesia’s decentralization era, beginning in the early 2000s, saw a shift in control over extractive industries from central to regional governments. The most significant law for the mining sector was the 2009 Mining Law, which gave district and municipal governments the authority to issue permits for mid-sized mines.

District government’s new authority to control permits did not come with an increase in budget or capacity to ensure that permits adhered to environmental laws. This, combined with a boom in global commodity prices, resulted in a subsequent explosion of mining permits across Indonesia, many of which have operated in violation of permit laws. According to the International Energy Agency, an estimated 74 million tons of coal were extracted illegally from small mining operations in Indonesia in 2013, contributing to an oversupply of coal.

Mining is now a major contributor to Indonesia’s economy. In 2014, revenue from the mining sector reached IDR 37.37 trillion ($2.8 billion), contributing around 10 percent of total state revenue, according to data from the extractive sector oversight body Extractive Industry Transparency Initiative (EITI). Government revenue from mining comes mainly from non-tax revenues in the form of royalties and land rent.

However, poor management and control of the mining permitting process — particularly for small to medium-sized mining concessions — has led to an excess of mining permits being issued by district governments, without adequate oversight or enforcement of related laws.


Coal mining pit in Jambi, Sumatra. Abandoned mining pits fill with water, becoming literal death-traps for people in nearby communities, particularly children. Photo courtesy of Feri Irawan/Perkumpulan Hijau.

Researcher Anna Funfgeld observed that 90 percent of Indonesia’s coal originates from Kalimantan, where strip mining is largely used to excavate coal close to the surface. The cheapest and most favored form of extraction, strip mining causes the destruction of landscapes and agricultural land and the contamination of water and soil, Funfgeld found.

Poor management in the issuance of mining licenses has meant that an excess of mining concessions has been issued, including in areas zoned for other purposes. According to a network of regional and nationally-based NGOs called Anti-Mining Mafia Coalition, 6.3 million hectares of mining concessions have been allocated illegally within forests zoned for protection.

Evidence of excessive and poorly regulated mining permitting emerged in the findings from a recent investigation by the National Human Rights Commission and NGO groups into the mining sector in East Kalimantan, where the majority of Indonesia’s coal is sourced. The investigation revealed that almost 70 percent of the province has been allocated for mining concessions. The same study found that 632 coal mining pits have been left abandoned across East Kalimantan. These pits often fill with water, and have been the cause of 27 deaths by drowning to date, including 21 children.

Poor management of mining permits has also resulted in revenue “leakage,” as financial dues – such as royalties and land tax – owed by mining companies are left unpaid. The revenues that are able to be collected from the coal sector in no way outweigh the expenses needed to address the extensive social and environmental damages brought by poorly managed mining operations, Merah Johansyah, the national coordination of JATAM, Indonesia’s Mining Advocacy Network, told Mongabay. “These include the impacts of flooding, forest destruction, community conflict and river and water source pollution,” he said.


Aerial view of the PT Borneo Indobara coal mining operation in South Kalimantan, part of Indonesian Borneo. Photo by Daniel Beltra/Greenpeace.

The central government’s response

Indonesia’s central government responded to problems in coal-mine permitting by tightening coal mining sector regulations, including introducing a clean and clear certification system. To obtain a clean and clear certificate, mining companies must prove they have no outstanding royalty and other tax debts; that rehabilitation funds have been collected and saved in a government bank account; that exploration and environmental commitments have been fulfilled; and that concession areas do not overlap with protected forest areas or with other companies’ concessions, including for palm oil and timber plantations.

In early 2014, following initial civil society reports of significant corruption, illegalities and environmental and social damage in the mining sector, the Corruption Eradication Commission (KPK), together with the Ministry of Energy and Mineral Resources and the Ministry of Environment and Forestry, began investigations into mining operations in 12 provinces with the largest number of mining permits. The initiative, called Korsup Minerba, aimed to assess the legality of mining permits, ensure companies were registered to pay tax, land rent and other royalties, and determine whether permits adhered to all relevant permitting and environmental laws.

The Korsup Minerba investigations began in February 2014, when there were a total of 10,992 locally-issued licenses across Indonesia. Within a year, investigations revealed that 40 percent of these licenses were non-clean and clear.

By April 2017, data from the energy ministry indicated that already 2,187 permits had been canceled or their operational period had ended and not been extended. The total number of permits active in Indonesia had reduced to 8,524 mineral and coal mining permits. However, 2,522 mining permits active in Indonesia are not clean and clear. After three years of implementation, Johansyah is concerned that the Korsup Minerba is yet to result in any significant improvements in mining governance.

“The clean and clear certification system is only a desktop exercise, to check that all documents are in place. It does not involve a site assessment,” Johansyah said. Clean and clear certification may not reflect whether companies’ operations adhere to environmental and human health protection laws. There are many instances of mining companies that violate laws but that hold clean and clear certification, Johansyah reported: “A child drowned in an abandoned mining pit in Kutai Kartenegara owned by a clean and clear mining company, PT Multi Harapan Utama.”


A baby orangutan in North Sumatra, Indonesia. Along with habitat loss due to mining, orangutans in both Sumatra and Borneo are threatened by fires and deforestation for oil palm and pulp plantations. Photo by Rhett Butler/Mongabay.

Efforts to clean up the mining sector also face challenges in collecting remaining debts owed. Mineral and coal mining companies owe the government a total of IDR 5.07 trillion ($380 million). Although this is a reduction from the total of IDR 6.65 trillion owed in December 2016, collecting the remaining arrears is proving to be difficult. “Collecting royalties has not been as easy as we initially thought. There are many obstacles,” an energy ministry official told Tempo in February.

Divisions in authority and a disconnect between central and regional government has made collecting revenues challenging. Although district, and now provincial governments are empowered to issue permits for mining, responsibility for collecting royalties, land rent and taxes lies largely with the central government.

As Hendra Sinadia, the deputy director of the Coal Production Association has observed, this has resulted in major gaps in data on mining operations between different levels of government. “I am certain the government does not have accurate data about coal mining production. Ever since the authority for mining has been with the regional government, the total number of mining permits has been hard to trace,” Sinadia told CNN Indonesia in January.

A lack of accurate data on mining permits, combined with a lack of resources, makes it difficult for the collection of state revenues from mining companies, explained Agung Budiono, communication and outreach manager at mining sector oversight NGO Publish What You Pay Indonesia.

“The Directorate General of Mineral and Coal Mining already has detailed data that includes the names of the thousands of companies that are in arrears. However, one of the biggest challenges has been that after tracing the names of the companies in arrears, it emerges that their existence is unknown. The addresses used when applying for a permit were not provided correctly,” Budiono told Mongabay.

It is not known whether the addresses were fake or companies have moved since registering for mining permits. “The Director General of Mineral and Coal Mining sent letters to mining permit holders in an effort to recover non-tax state revenues owed to the government. However, many of the letters came back return to sender, indicating the addresses are incorrect,” said Budiono.

The Anti-Mining Mafia Coalition are pushing for more transparency in the issuance of mining permits. Making public all mining permits in Indonesia, including their full names and addresses, as well as their progress towards meeting clean and clear certification, would help to ensure better civil society oversight, said Ali Adam Lubis, a representative of the Anti-Mafia Coalition in a media statement.

“Going forward the government needs to blacklist individuals or companies that don’t comply with laws. It is important to make data on mining permits available to the public and law enforcement agencies,” Budiono told Mongabay. Partnerships between government agencies like the Directorate of Mineral and Coal Mining and the Directorate of Common Law Administration, could also help government to identify debt-owing mining permit holders, said Budiono.


Coal barges come down the Mahakam river in Samarinda, East Kalimantan, Indonesian Borneo every few minutes. Photo courtesy of Ardiles Rante/Greenpeace.

Cracking down on non-compliant mining companies brings its own challenges for provincial governments. Governors who have canceled non-clean-and-clear permits are facing resistance from the mining sector and from district governments. Already 20 mining companies that have had their permits revoked are threatening to sue provincial governments. Budi Santoso, Director of the Centre for Indonesian Resources Strategic Studies, said that mining companies base their cases against provincial governments on the lack of legal strength with clean and clear certification. “Mining permits that are revoked for not having clean and clear status can potentially be contested, because clean and clear does not have a legal basis,” Santoso told Kontan.co.id.

There are reports that district heads are also pushing back against the cancelation of permits. In East Kalimantan, 59 percent of the 1,404 mining permits issued to coal companies are not clean and clear and are at risk of revocation. The governor told local media in April that he is under pressure from district heads to not make problems for coal mining companies by canceling their permits.

The government is seeking to increase revenues from mining by increasing royalty rates paid by mining companies. In February 2017, the House of Representatives decided that smaller coal mining companies will have to pay royalty rates of between 10 to 13 percent, depending on the quality of coal they mine – an increase of the current royalty rates of 3.5 to 7 percent. Parliamentary lawmakers are optimistic that these increased royalty rates will see state revenue rates increase.

Environmental activists caution, however, that without improvements to the government’s management of the mining sector, the increased royalty rates may also not result in increased state revenues. Appropriate law enforcement must follow for companies that don’t obey laws, said Johansyah.

largest exporters of coal https://www.eia.gov/beta/international/analysis_includes/countries_long/Indonesia/indonesia.pdf
International Energy Agency https://www.iea.org/publications/freepublications/publication/medium-term-coal-market-report-2014.html
oversupply of coal http://www.thecoalhub.com/reports-presentations/indonesias-electricity-demand-and-the-coal-sector-export-or-meet-domestic-demand.html
Funfgeld found https://aseas.univie.ac.at/index.php/aseas/article/view/1041
Anti-Mining Mafia Coalition https://programsetapak.org/wp-content/uploads/2017/01/saatnya-kerja-nyata-selamatkan-SDA.pdf
National Human Rights Commission and NGO groups https://www.pressreader.com/indonesia/kompas/20161201/281947427462507
10,992 locally-issued licenses http://endcoal.org/2016/02/media-briefing-corruption-and-illegalities-in-the-mining-sector-in-indonesia-a-ranking-of-12-provinces-involved-in-korsup-minerba/
IDR 5.07 trillion ($380 million) http://www.thejakartapost.com/news/2017/03/08/government-to-revoke-permits-of-delinquent-miners.html?src=ilaw
CNN Indonesia http://www.cnnindonesia.com/ekonomi/20170105103857-85-184232/pencabutan-iup-tambang-non-cnc-bikin-ruwet-produksi-batu-bara/
sue provincial governments http://www.beritasatu.com/ekonomi/407726-20-pemegang-izin-usaha-tambang-gugat-pemda.html
Kontan.co.id http://industri.kontan.co.id/news/iup-dicabut-20-perusahaan-gugat-pemerintah
local media http://kaltim.tribunnews.com/2017/04/22/gubernur-pencabutan-izin-tambang-tak-bisa-satu-dua-hari
February 2017 http://jakartaglobe.id/business/indonesia-to-raise-royalties-on-small-coal-miners/


http://www.livemint.com/Companies/AUMV0WOLtsuHwuD0b6qBZM/GMR-Infra-to-sell-stakes-in-Indonesian-coal-mining-entities.html
GMR Infra to sell stakes in Indonesian coal mining entities
Last Modified: Sat, May 13 2017. 01 05 AM IST

GMR Infra units GMR Energy Netherlands and GMR Infrastructure Overseas have entered into conditional share purchase pact with PT Golden Energy Mines Tbk


GMR Infra said it has entered into pacts for divesting stakes in its Indonesian coal mining entities. Photo: Mint

New Delhi: GMR Infrastructure on Friday said it has entered into pacts for divesting stakes in its Indonesian coal mining entities.

Two subsidiaries of the company—GMR Energy Netherlands BV and GMR Infrastructure Overseas Ltd—have entered into conditional share purchase agreement with PT Golden Energy Mines Tbk, Indonesia.

The pact is for selling a 100% stake, according to a regulatory filing.

Besides, the company would sell “mandatorily convertible bonds in PT Dwikarya Sejati Utama, PT Duta Surana Internusa, PT Unsoco and PT Barasentosa Lestari,” the filing said.


http://www.moneycontrol.com/news/business/stocks-business/gmr-infrastructure-up-1-on-stake-divestment-in-indonesian-coal-mining-cos-2278833.html
GMR Infrastructure up 1% on stake divestment in Indonesian coal mining cos
Posted by Rakesh Patil
May 15, 2017 09:28 AM IST | Source: Moneycontrol.com

The company will also sell mandatorily convertible bonds in PT Dwikarya Sejati Utama, PT Duta Surana Internusa, PT Unsoco and PT Barasentosa Lestari.


Shares of GMR Infrastructure rose 1.5 percent in the early trade on Monday as it has entered into agreements for stakes divestment in its Indonesian coal mining entities.

The company’s subsidiaries GMR Energy Netherlands BV and GMR Infrastructure Overseas have entered into conditional share purchase agreement with PT Golden Energy Mines Tbk, Indonesia for sell of 100 percent equity shareholding.

The company will also sell mandatorily convertible bonds in PT Dwikarya Sejati Utama, PT Duta Surana Internusa, PT Unsoco and PT Barasentosa Lestari.

The agreement is subject to the parties securing various statutory approvals.

At 09:22 hrs GMR Infrastructure was quoting at Rs 16.85, up Rs 0.25, or 1.51 percent on the BSE.

The share touched its 52-week high Rs 18.60 and 52-week low Rs 10.25 on 25 April, 2017 and 09 November, 2016, respectively.

In the last six months the share price rose as much as 48 percent.

GMR Infrastructure http://www.moneycontrol.com/india/stockpricequote/infrastructure-general/gmrinfrastructure/GI27


http://industri.kontan.co.id/news/iup-dicabut-20-perusahaan-gugat-pemerintah
IUP dicabut, 20 perusahaan gugat pemerintah
Selasa, 03 Januari 2017 / 06:00 WIB

JAKARTA. Kementerian Energi dan Sumber Daya Mineral (ESDM) menerima gugatan dari 20 perusahaan yang Izin Usaha Produksi (IUP)-nya dicabut akibat tidak memenuhi kriteria Clean and Clear.

Kepala Biro Layanan Informasi Publik dan Kerjasama Kementerian Energi dan Sumber Daya Mineral (ESDM), Sujatmiko menyatakan, dari IUP yang telah dicabut, hanya beberapa saja yang menggugat.

“Sekitar 20 IUP. Selebihnya IUP yang bermasalah dicabut karena sebagian besar masa berlakunya habis dan tidak ada aktivitas eksplorasi, serta karena berada di dalam kawasan hutan lindung atau konservasi,” terangnya kepada KONTAN, Senin (2/1).

Saat ini, Kementerian ESDM berkoordinasi dengan gubernur untuk menyiapkan langkah-langkah jika ada gugatan ke PTUN setempat dari IUP yang dicabut. Jika ada gugatan kepada gubernur yang mencabut IUP, maka Kementerian ESDM menyiapkan keterangan ahli untuk menjelaskan tugas dan fungsi gubernur sesuai Permen ESDM No. 43 Tahun 2015.

“Keterangan ahli tersebut untuk menjelaskan bahwa gubernur sudah benar dalam melaksanakan penataan IUP Non CnC sesuai ketentuan yang diatur dalam Permen ESDM No. 43 Tahun 2015,” pungkasnya.

Asosiasi Perusahaan Batubara Indonesia (APBI), Hendra Sinadia berpendapat, gugatan terkait pencabutan IUP itu mungkin pemegang IUP yang bisa saja berdalih bahwa izin yang mereka dapatkan itu legal.

“Jadi mereka punya good faith karena tidak mengetahui jika izin yang diberikan itu tumpang tindih, jadi seharusnya tanggung jawab pemberi izin,” tandasnya kepada KONTAN, Senin (2/1).

Direktur Centre for Indonesian Resources Strategic Studies (Cirrus), Budi Santoso mengatakan, pemerintah bisa mencabut IUP apabila pelaku tambang tidak memenuhi kewajiban serta wilayah tambang tumpang tindih. “Kalau mencabut IUP yang belum CnC bisa berpotensi digugat, karena CnC itu tidak ada dasar hukumnya,” katanya kepada KONTAN, Senin (2/1).

Budi menuturkan banyak faktor yang membuat pelaku usaha belum mengantongi CnC. Dia bilang salah satu faktornya berasal dari birokrasi pemerintah. Lamanya proses rekonsialiasi data membuat proses CnC bisa melewati tenggat waktu 2 Januari ini. Oleh sebab itu dia menyebut penataan tambang jangan hanya berhenti pada hari ini. Selama kegiatan penambangan masih ada di bumi Indonesia maka penataan itu hendaknya terus dilakukan.

Pemerintah sebaiknya memilah dan memilih IUP mana yang sebaiknya dicabut. Pasalnya status CnC belum cukup menjamin pelaku tambang memenuhi kewajiban yang ada. “Kalau CnC diberikan tiga tahun lalu tidak menjamin mereka taat,” tutur Budi.

Penataan pertambangan melibatkan Komisi Pemberantasan Korupsi (KPK) terkait koordinasi dan supervisi sejak 2014 silam. Tercatat jumlah IUP yang ada saat ini mencapai 9.721 perusahaan. Dari jumlah IUP tersebut hanya sebanyak 6.335 IUP berstatus CnC. Sedangkan sekitar 3.286 IUP sisanya masih dalam tahap rekonsiliasi oleh Gubernur.

Direktur Jenderal Mineral dan Batubara (Dirjen Minerba) Kementerian ESDM, Bambang Gatot Ariyono mengatakan status rekomendasi IUP ke pemerintah pusat berakhir tanggal 2 Januari 2017 ini. Saat ini total rekomedasi baru IUP untuk di CnCkan berjumlah 915. Tercatat dari Gubernur 427 IUP dan Kepala Dinas merekomendasikan 488 IUP.

Bambang bilang ada 45 IUP yang memenuhi persyartan dari Permen 43 Tahun 2015. Sedangkan ada 379 IUP yang belum atau tidak memenuhi syarat. Untuk yang belum memenuhi syarat bisa berkoordinasi dengan Pemerintah Provinsi agar bisa memenuhi kriteria dalam Permen 43/2015.

“Sementara untuk 488 IUP dari Kepala Dinas belum bisa dinyatakan CnC karena belum memenuhi syarat Permen 43/2015,” tandasnya.

Reporter Pratama Guitarra
Editor Rizki Caturini


http://www.setneg.go.id/index.php?option=com_content&task=view&id=10146&Itemid=55
Presiden: Kalkulasi Lagi Pengalihan Subsidi Listrik PDF Cetak
Rabu, 04 November 2015

‎Seluruh kebijakan pemberian subsidi secara bertahap dan terencana harus bergeser dari sektor-sektor yang bersifat konsumtif ke subsidi yang lebih produktif. A‎gar lebih tepat sasaran secara bertahap dan terencana subsidi yang semula diarahkan pada barang, beralih pada penerima manfaat langsung subsidi, yaitu warga yang membutuhkan. Hal ini dibahas dalam Rapat Terbatas tentang Tarif Dasar Listrik yang dipimpin oleh Presiden, di Kantor Presiden, Jakarta, Rabu 4 November 2015.‎

‎Upaya ini merupakan bagian dari reformasi struktural, sehingga Pemerintah terus melakukan perbaikan pengelolaan berbagai subsidi, termasuk subsidi energi. Demikian seperti yang dilansir Tim Komunikasi Presiden Sukardi Rinakit‎.

Pada saat ini untuk pengguna listrik 450 VA dan 900 VA masih mendapat subsidi masing-masing Rp1.047/kWh dan 874/kWh. P‎LN mencatat jumlah pelanggan yang memasang listrik kapasitas 450 VA dan 900 VA yaitu 43 juta.

Padahal dalam laporan Tim Nasional Percepatan Penanggulangan Kemiskinan (TNP2K) yang bersumber dari Badan Pusat Statistik (BPS) menyebutkan keluarga miskin berjumlah 15,5 juta keluarga dan rentan miskin 9,5 juta keluarga. Artinya sekitar 18 juta pelanggan PLN tidak dapat dikategorikan keluarga miskin atau rentan miskin.

Untuk itu, Presiden meminta dilakukan rekonsiliasi data antara pengguna listrik 450 VA dan 900 VA dengan data keluarga miskin dan rentan miskin. “‎Langkah rekonsiliasi data ini penting dilakukan agar kebijakan subsidi listrik benar-benar tepat sasaran,” ujar Presiden.

Presiden meminta Menteri Energi dan Sumber Daya Mineral (ESDM) dan Perusahaan Listrik Negara (PLN) segera mengalkulasi opsi-opsi pengalihan subsidi termasuk dampak pengalihan subsidi ini. “Kalkulasi perlu dihitung dengan cermat, sehingga pengalihan subsidi tarif dasar listrik tidak menjadi beban bagi masyarakat miskin dan rentan miskin,” ucap Presiden.

Pada pengantar rapat terbatas, Presiden menekankan PLN juga harus membantu pelaku usaha mikro dan kecil seperti penjahit yang juga menggunakan listrik di malam hari. “Saya ingin mengingatkan, dalam paket deregulasi lalu industri diberikan diskon pada malam hari 30%. Kali ini hati-hati, tolong dilihat di lapangan karena data yg saya punya banyak usaha mikro yang ada di desa, yang punya jahitan” pungkas Presiden. (Humas Kemensetneg)


http://www.setneg.go.id/index.php?option=com_content&task=view&id=10840&Itemid=26
Pengantar Presiden RI – Ratas Tentang Tarif Dasar Listrik, Jakarta, 4 November 2015
Rabu, 04 November 2015

PENGANTAR PRESIDEN REPUBLIK INDONESIA
RAPAT TERBATAS TENTANG TARIF DASAR LISTRIK
KANTOR PRESIDEN
JAKARTA, 4 NOVEMBER 2015

Assalamualaikum warahmatullah wabarakatuh,

Mengenai tarif dasar listrik, saya minta agar ada rekonsiliasi antara pengguna listrik 450 dan 900 dengan data keluarga miskin dan rentan miskin. Langkah rekonsiliasi data ini penting agar kebijakan subsidi listrik ini benar-benar tepat sasaran.

Kemudian saya juga minta Menteri ESDM dan PLN juga mengalkulasi pilihan-pilihan, opsi-opsi pengalihan subsidi ini agar dampak pengalihan subsidi ini juga nantinya bisa kita kurangi sebesar-besarnya.

Saya hanya ingin mengingatkan bahwa, pada paket deregulasi yang lalu, industri diberikan diskon yang malam hari 30%. Yang ini hati-hati, tolong lihat di lapangan karena data yang saya punyai juga banyak usaha mikro, usaha kecil yang masuk ke dalam lingkup ini. Yang ada di kampung, yang ada di desa, yang punya jahitan dua, jahitan satu, ini memerlukan juga subsidi.

Jangan sampai nanti timbul sebuah anggapan bahwa kita memberikan bantuan, insentif kepada usaha-usaha besar dengan diskon di malam hari, dan justru kita mencabut subsidi untuk usaha mikro dan usaha kecil yang ada di kampung, yang ada di desa.

Saya kira langkah-langkah dan kakulasi-kalkulasi seperti itu perlu betul-betul kita hitung sehingga jangan sampai nantinya masalah yang berkaitan dengan tarif dasar listrik ini menjadi masalah di rakyat, di masyarakat.

Saya kira itu sebagai pengantar dari saya. Saya persilakan Menteri ESDM atau dari PLN.

*****

Biro Pers, Media dan Informasi
Sekretariat Presiden


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