Sri Mulyani Issues Regulation to Ensure Domestic Coal Supply
Minister of Finance Sri Mulyani Indrawati has issued Regulation of Minister of Finance Number 17/PMK.02/2022 on Types and Tariffs of Non-Tax State Revenues (PNBP) for Urgent Matters in the Forms of Fines and Compensation Funds for Fulfilling Coal Domestic Market Obligation at Ministry of Energy and Mineral Resources.
The regulation, which was stipulated on March 2, 2022, is expected to serve as a legal basis for the collection of new types of PNBP.
“It is also in line with the directive of President of the Republic of Indonesia stating the domestic market obligation for coal must be fulfilled for public interest,” Ministry of Finance’s Director General for Budget, Isa Rachmatarwata said, Tuesday (03/22).
The regulation is aimed at ensuring that supply of coal is enough for domestic market, be it for state-owned electricity company PLN, cement industry, and other sectors before sending it for export.
The regulation also stipulates sanction for companies that fail to fulfill demands for coal at domestic market in forms of fines and compensation.
Isa went on to say that there are still companies holding Mining License (IUP) or Special Mining License (IUPK) that have not meet their obligation to fulfill domestic coal demand, resulting in coal that is not always available at domestic market that makes coal in short supply for domestic industry and obstructs public interest.
In the event of companies that fail to meet domestic supply as stipulated in the contract with domestic industries, those companies will be imposed with sanction, Isa added.
In addition, Isa added that for companies holding IUP or IUPK that are obliged to fulfill coal domestic market but have no contracts with domestic industries which sold their products to export market, they must pay compensation. (PR of Ministry of Finance/UN) (RAS/EP)