Minerba Reference Price Rules Issued, Government Gives Sanctions For Violators

JAKARTA - The government issued ESDM Ministerial Regulation (Permen) Number 11 of 2020 concerning the Third Amendment to the Minister of Energy and Mineral Resources Regulation Number 7 of 2017 concerning Procedures for Determining Metal Mineral Reference Prices (HPM) and Coal Reference Prices (HPB). In this regulation, the government also applies sanctions for those who violate it.

The determination of HPM Logam in Permen ESDM Number 11 of 2020 has taken into account the Reference Mineral Price (HMA) that applies internationally.

Plt. Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Rida Mulyana, said that there are several main substances regulated in the Permen. First, the determination of HPM and HPB is determined by considering the international market, increasing added value, and good mining practices.

Second, the HPM for nickel ore is determined as the floor price. Transactions can be made below price, with a difference of not more than 3 percent. To anticipate differences in price quotes or impurity mineral penalties, such as levels of Fe and Mg that exceed the standard. Third, the Minister of Energy and Mineral Resources also stipulates that in purchasing nickel ore, other parties must refer to HPM.

"Fourth, the addition of tin price publications refers to the Jakarta future exchange, from previously only the Indonesian Commodity and Derivative Exchange (ICDX)," he said in a video conference with journalists, Monday, July 20.

Fifth, the HPM and HPB formulations are set monthly through the Ministerial Decree. Sixth, in the field, verification of the quality and quantity must be carried out by the implementing surveyor, who will issue a verification result report (LHV).

"Seventh, the one who appoints the surveyor in this Permen is the Director General of Minerba, who will assign the surveyor to verify the sales of minerals and coal in the field," he said.

Eighth, domestic sales must appoint a surveyor as an umpire (umpire) if there is a difference in the results of the analysis between the quality of minerals between the seller and the buyer. Then, the ninth, the provisions of the HPM and HPB formulas are also regulated in this Permen, which can be reviewed every 6 months.

"So, for example, if we publish it in February plus 6 months of evaluation around October," he said.

Tenth, sanctions for not referring to HPM and HPB. Sanctions in the form of written warnings, temporary suspension of activities, to revocation of Mining Business Permits (IUP). Then administrative sanctions are imposed on IUP holders who make sales under HPM.

"Also to other parties who make purchases under HPM, after coordination with related ministries such as the Ministry of Industry," he said.

Finally, the eleventh, this Ministerial Regulation is legally enforced from 30 days after it was promulgated on April 14, 2020.

"This regulation also aims to create a trade system in the mineral and coal sub-sector towards fairness, competition and transparency for mining and smelter businesses, especially nickel," he said.