JAKARTA (rambuenergy.com) – The Indonesian Energy and Mineral Resources Ministry (ESDM) expects to sign 13 contract of works (CoWs) amendments in December this year, a senior official at the energy ministry said.
Director General for Minerals and Coal at the energy ministry Bambang Gatot Aryono said signing of the amendment will take place following the completion of the years-long of negotiations. The amendment of contracts is part of the implementation of the Law No. 4, 009 on Minerals and Coal.
Since the enactment of the law, only one CoW amendment has been signed, 13 CoWs amendment negotiation has been finalized and pending on the signing date, 20 CoWs are being in the process of amendment. The government targets to amend 34 CoWs.
He expects 14 more CoWs will be amended. Most of issues that requires lengthy process were issues related with tax, royalty and retribution.
The ministry is also negotiating with the holders of Mine Operation Agreements (PKP2B). Out of 74 holders of PKP2B, 10 have been amended. The main issues that have hampered the amendment talks are related with taxes and royalties. (*)