Main reason for the delay in implementation is that additional time is needed for the processing of more license applications. Local miners had requested the delay as many faced difficulties to obtain the new license amid a lack of clarity regarding the new legal framework, thus jeopardizing coal export and local businesses. Two days ago, Indonesian Trade Minister Muhammad Lutfi issued a revision, compelling the country’s thermal and metallurgical coal exporters to secure a license at the ministry first before export is allowed.

To obtain the ET, Indonesian coal miners need to seek a recommendation from the Ministry for Energy and Mineral Resources first as stipulated by Regulation of the Director General of Mineral and Coal No 714 K/30/DJB/2014 (Peraturan Dirjen Minerba No 714 K/30/DJB/2014). To obtain the recommendation, the miner is required to show documents that prove it has met tax and royalty payment obligations. It is also mandatory to have the clean and clear certificate (CnC). This CnC certificate shows that the miner has no outstanding royalty and other tax debts, fulfilled exploration and environmental commitments, has no property delineation issues and obtained forestry permits.

Further Reading:

Overview of coal mining in Indonesia


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