At the end of the street, the government suddenly changes clothing to Coal BLUE

Jakarta, CNBC Indonesia – The government’s plan to form a public service agency (BLU) to collect coal dues is in danger of being cancelled. Indeed, before the final discussion, it was reported that the government had changed its implementation mechanism to become a government agency partner (MIP).

Indonesian Mining & Energy Forum (IMEF) chairman Singgih Widagdo said most of the mining companies supplying coal nationwide are looking forward to the coal BLUE.

However, towards the final BLU, the government switched from the BLU mechanism to the Managing Agency Partner (MIP). “The government has made it clear that the MIP model in content hardly changes what is in the BLU,” he told CNBC Indonesia on Tuesday (10/1/2023).

In this way, according to Singgih, the manager of BLU could change, which was originally to be entrusted to Lemigas of the Ministry of Energy and Mineral Resources.

Even so, whatever the form, according to Singgih, the goal is the same, namely to minimize the price disparity that occurs to ensure the reliability of the country’s coal supply. Especially for the benefit of national electricity.

“With the implementation of BLU or MIP, the fines and compensation policies will no longer automatically apply. However, until BLU and MIP are implemented, the fines and compensation policies should still apply, in the interest to maintain Internal Procurement Reliability (DMO),” he said.

As is known, the project to set up a public service body (BLU) for the collection of coal quotas still seems to encounter some obstacles. This was announced by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

According to Arifin, the plan to form BLU has yet to reach an agreement. This is because shortcomings remain in the proposal for the draft establishment of a body that will manage the coal harvesting fund.

“So indeed the BLUE that was proposed yesterday still exists handicaps“The (obstacle), if you follow the mechanism, there is still the compulsory expenditure, right? Who has participated in the BLU so far, the BLU concept is to be able to make a disbursement contribution, better if the entrepreneurs themselves do this”, Arifin said when he met at the Esdm Ministry on Friday (6/1/2023).

The plan to form BLU Batubara itself will effectively mimic what has been applied to palm oil companies by forming the Oil Palm Plantation Fund Management Agency (BPDPKS). But apparently there is a difference between palm oil and coal.

“There’s no need for BLU, because if it’s in palm oil it’s bonded to our diesel, if it’s not blended,” said Arifin.

Therefore, his party is currently again discussing the continuation of the formation of BLUE itself. So it is uncertain whether this BLU will form in the near future. “This is still under discussion,” he said.

[Gambas:Video CNBC]