Bahlil Assures Not to Apply Gross Split Scheme for Mineral Commodities
JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has confirmed that the gross split scheme will not be applied to mineral and coal commodities (minerba). For information, the scheme that applies in the oil and gas sector was previously rumored to be applied to the minerba sector.
Bahlil said that this decision was made based on President Prabowo Subianto's instructions which emphasized the mechanism for sharing results with the gross split scheme only applies to the oil and gas sector (migas).
"In the Ministry of Energy and Mineral Resources, based on the rules and directions of the President who adheres to the gross split calculation, there is only in the oil and gas sector, while in the mining sector there is no change at all," said Bahlil in a press conference at the DPR RI Building, Jakarta, Monday, June 8.
The Chairman of the Golkar Party emphasized that the government would still maintain the regulations that apply in the mining sector today, namely there is no profit-sharing system like oil and gas that knows gross split or cost recovery.
According to him, this decision was taken to maintain legal certainty and the investment climate.
"This is important for me to convey to provide clarification that the existing rules have not changed forever. It is my duty to maintain it," said Bahlil.
Previously, Bahlil said the government planned to implement a revenue-sharing scheme as in the oil and gas sector. private. One example that was seen was the oil and gas scheme, such as cost recovery and gross split. Cost recovery is a scheme when operating costs are replaced first, then the results are divided. The gross split divides the production results from the beginning.
Bahlil conveyed this after being summoned by the President at the Presidential Palace Complex, Jakarta, Tuesday, May 5.
"We discussed the arrangement of mines in the future, which must be owned by the state," said Bahlil.
According to Bahlil, this arrangement will target both old and new mines. The goal is for the country to get the maximum benefit from natural resources.
"Maybe these patterns will be what we try to exercise to be able to cooperate with the private sector," he said.
Bahlil emphasized that concessions are not automatically removed. The concession is a management permit from the state to the company. However, the distribution will be directed to be more balanced.