Energy Ministry, coal miners sign amendment of 10 Coal Contract of Works

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JAKARTA (rambuenergy.com) – Minister for Energy and Mineral Resources Sudirman Said and coal miners on Wednesday (Aug. 5) signed amendments on 10 coal contract of works (CCoWs) also known as (PKP2B).

“The signing of 10 amendment of PKP2B is a concrete step in the implementation of the Law Number 4, 2009. This signing is to be followed by other contract of works (CoWs) and other PKP2B holders to speed up the contract renegotiation,” said Minister Sudirman.

The amendment is expected to stimulate efficiency in the development of coal mining projects as well as increase revenues to the State.

There are six points that were amended in the contracts, namely size of mining area, continued operation of the mining, state revenues, requirement to establish smelter, divestment as well as the requirement to use local employees as well as domestic goods and services (TKDN).

Director General for Minerals and Coal Bambang Gatot Ariyono said the ministry is currently negotiating with 34 holders of CWs and 73 PKP2B holders.

The 10 companies that signed CCOW are as follows:

1. PT Indominco Mandiri (East Kalimantan)
2. PT Jorong Barutama Greston (South Kalimantan)
3. PT Trubanindo Coal Mining (East Kalimantan)
4. PT Antang Gunung Meratus (South Kalimantan)
5. PT Bahari Cakrawala Sebuku (South Kalimantan)
6. PT Borneo Indobara (South Kalimantan)
7. PT Gunung Bayan PratamaCoal (East Kalimantan)
8. PT Kartika Selabumi (East Kalimantan)
9. PT Mandiri Intiperkasa (East Kalimantan)
10. PT Indemix Coalindo