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JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has submitted an ESDM letter regarding the Offering of Special Mining Business Permit Areas (WIUPK) for the Kohong Kelakon Block to the Central Kalimantan Provincial Government and PT Bukit Asam Tbk (PTBA) at the Directorate General of Mineral and Coal, Jakarta, Tuesday 12 July.

The handover of the letter was represented by the Director of Coal Business Development, Lana Saria, to the Governor of Central Kalimantan, Sugianto Sabran, while the Secretary to the Director General of Mineral and Coal, Iman Sinulingga, handed it over to the President Director of PTBA, Arsal Ismail.

Lana explained that the submission of this letter is by Article 75 of Government Regulation Number 96 of 2021 concerning Implementation of Mineral and Coal Mining Business Activities and Article 27 of the Minister of Energy and Mineral Resources Regulation Number 7 of 2020 concerning Procedures for Regional Granting, Licensing and Reporting on Mineral and Coal Mining Business Activities.

Lana added that the Minister of Energy and Mineral Resources in granting WIUPK first made an offer to State-Owned Corporation (BUMN) and Regional-Owned Enterprises (BUMD) in a priority manner.

Through this mechanism, PTBA as a BUMN, as well as the Central Kalimantan Provincial Government through Central Kalimantan Regional-Owned Enterprises (BUMD), if interested, can seek the WIUPK that has been determined. The Ministry of Energy and Mineral Resources gives time for both parties to submit answers to the offer, no later than 10 working days from the receipt of the letter.

"We hope that PTBA or the Central Kalimantan Provincial Government can provide answers before July 26, 2022", said Lana to the media, Thursday, July 14.

Lana added, that if within 10 working days there is an agreement between PTBA and the Central Kalimantan Provincial Government, then there is no need for an auction. However, if both parties will provide their own answers, the Ministry of Energy and Mineral Resources will conduct an auction process with certain conditions. An auction committee will be formed and a decision will be made within 60 days at the latest.

PTBA President Director Arsal Ismail welcomed the offer from the South Kalimantan Provincial Government. His party offered the cooperation to invest 90 percent of PTBA's capital, while the Central Kalimantan Provincial Government of 10 percent.

Arsal also promised to help finance regional government-owned enterprises and would soon submit a letter of agreement regarding the proposed composition of the cooperation shares. "We understand that the area must be optimized", said Arsal.

Meanwhile, Sugianto explained that his party did not want to be left behind in managing natural resources in the area. The mining sub-sector is expected to provide greater benefits for the welfare of the community.

He is concerned that the mining and plantation industries that are managed privately in Central Kalimantan are currently not providing optimal benefits for the surrounding residents.

Sugianto explained that the Central Kalimantan Provincial Government is interested in trying to manage the Kohong Kelakon Block through BUMD. For that, he hopes to cooperate with PTBA.


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