Home > LGS Newsletters

LGS Newsletters

---

Establishment of an Evaluation Team for Contract of Work and Coal Contract of Work Adjustments

Presidential Decree No. 3 of 2012 on the Contract of Work and Coal Contract of Work Adjustment Evaluation Team (“Decree”) has been issued on 10 January 2012 in order to establish a team that will evaluate the adjustment of Contracts of Work (CoW / Kontrak Karya) and Coal Contacts of Work (CCoW / Perjanjian Karya Pengusahaan Pertambangan Batubara) as required by Article 169(b) of Law No. 4 of 2009 on Mineral and Coal Mining (“Law”). The Evaluation Team will operate from 10 January 2012 until December 2013 (Part 7).

Part 1 of the Decree sets out the membership of the Evaluation Team as follows:

• Coordinating Minister for Economic Affairs (also serving as Chairman)
• Minister of Energy and Mineral Resources (also serving as Chairman of day-to-day operations)
• Minister of Finance
• Minister of Interior Affairs
• Minister of Law and Human Rights
• Minister of Industry
• Minister of Trade
• Minister of Forestry
• Minister of State Owned Enterprises
• Cabinet Secretary
• Attorney General of the Republic of Indonesia
• Chairman of the Finance and Development Supervisory Agency (BPKP)
• Head of National Land Agency (BPN)
• Chairman of the Indonesia Investment Coordinating Board (BKPM)

and the Director General of Mineral and Coal as the Secretary

The Evaluation Team, according to Part 2 of the Decree, is tasked with three main duties:

1. Evaluate the provisions of CoWs and CCoWs that need to be adjusted in accordance with the Law.
2. Set out the steps for determining the government’s position on mining work areas and government revenue, for the purpose of adjustment negotiations.
3. Set out the steps for enforcement of CoW and CCoW holders’ obligations regarding processing/refining of minerals and coal (Article 170 of the Law).

Operationally, the Evaluation Team will be able to form a secretariat and a working group, with tasks and composition as determined by the Chairman (Part 3). Additionally, the Evaluation Team can involve other ministries, non-ministry government agencies, local government, stakeholders, and others, as deemed necessary (Part 5). Funding will come from the Ministry of Energy and Mineral Resources (Part 6). The Evaluation Team will report to the President at least every 6 months (Part 4).

Source: Presidential Decree No. 3 of 2012 on the Contracts of Work and Coal Contracts of Work Adjustment Evaluation Team; www.hukumonline.com, ILB, 01/02/2012: Work Contract to be Amended

 

[Last update: 2012-02-02 01:34:39]