ESDM Minister Arifin Tasrif is Optimistic That Discussions on the Coal BLU Will Be Completed This Year

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. Antara)

JAKARTA - The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the progress of establishing the coal Public Service Agency (BLU) has reached the stage of discussion between ministries and agencies.

"The progress of preparing the draft Presidential Regulation has come to discussions on harmonization between Ministries and Institutions which have been carried out in 3 rounds. It is hoped that these discussions can be completed before entering 2023," he said in a Working Meeting with Commission VII of Indonesian House of Representatives (DPR RI), Monday, November 21.

He detailed, the discussion that is being carried out is regarding the impact of BLU on the status of Non-Tax State Revenue (PNBP) of coal compensation funds against the posture of the State Budget, especially for mandatory education and health funds.

Arifin said that later the collection and distribution mechanism would follow the Palm Oil Plantation Fund Management Agency (BPDPKS).

Later, the concept of collecting compensation funds collected by BLU for all coal sold for both export and domestic use with a collection mechanism together with royalties. Meanwhile for the distribution concept, continued Arifin, the coal supply will issue two invoices simultaneously to BLU and PLN for verification by the Director General of Mineral and Coal (Minerba) and PLN.

The compensation fund is given to all domestic coal suppliers for PLN and industry except for smelters.

"The concept of the amount of levy is based on calories added with a VAT value of 11 percent with an adjustment schedule every quarter and when collection is paid at the beginning together with royalties," he explained.

As is known, previously coal energy products experienced a crisis, so the government stopped coal exports earlier this year. PT PLN had a shortage of coal supply. Members of Commission VII DPR who attended this meeting questioned the scarcity of coal in the country, while exports continued. For this reason, the Ministry of Energy and Mineral Resources must respond by developing appropriate strategies and policies to regulate coal DMOs.