- Determines a minimal percentage for the sale of coal for domestic market obligation purposes for the holders of coal mining licenses (e.g. Mining Business Licenses [Izin Usaha Pertambangan/IUP], Special Mining Business Licenses [Izin Usaha Pertambangan Khusus/IUPK] or work contracts [Perjanjian Karya]) of 25% of the relevant planned coal production amount of the year 2021, as approved by the government. This percentage must be fulfilled by all holders of coal-mining licenses. Furthermore, any failure to meet this minimal coal sale percentage in order to meet the domestic market obligation, as referred to above, will render the relevant license holders liable for the payment of compensation in amounts equal to the relevant coal sale deficit for the domestic purpose obligation.
- Sets a sale price for coal for the provision of electrical power for public purposes of USD 70/metric ton Free-on-Board (FOB) Vessel, which is based on the following reference specifications: 1) A calorie level of 6.322 kcal/kg GAR; 2) Total moisture of 8%; 3) Total sulphur content of 0.8%; and 4) Total ash content of 15%.
- Any business entities involved in the provision of electrical power in the public interest are now required to draw up fulfillment plans that address coal requirements for the following year through the prioritization of a long-term contract mechanism.
- This decree has been in force since 29 December 2020 and can be accessed here.
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