Coal PSA Policy Applicable Retroactively Since January 2022

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that the coal public service agency (BLU) policy implementation, including fees, will apply retroactively from January 2022. The coal PSA policy will be contained in a Presidential Regulation. "We are determining the due date for PSA implementation, which will be early January 2022. This PSA will not exercise the clauses and conditions applied when the BLU is issued," Arifin said in a Working Meeting with the Energy Commission of the House of Representatives (DPR) on Tuesday.

According to Arifin, the retroactive coal BLU policy can be implemented because the government has discussed the special entity since the beginning of this year. In fact, the government has set a domestic market obligation (DMO) policy related to coal PSA. "It was discussed at the beginning of the year, so we use this as a benchmark to determine the due date," he said.

Arifin added that the Energy Ministry would disseminate the coal PSA policy to business actors shortly. "So, even though the PSA is published next month, it will remain in effect from the beginning of the year. These are signs of how we can discipline the obligations of each mining company," he said.