Jakarta, CNBC Indonesia – The mineral and coal sector has been in the spotlight in recent months, especially because the government has issued new regulations related to this sector, starting from the enactment of Law No.3 of 2020 concerning Minerals and Coal in May and recently the Law on Human Settlements The work also adds to a number of regulations related to minerals and coal.
A number of parties support this new government regulation, but not a few are against and criticize these two laws. So, what is the response from one of the largest coal producers in Indonesia about these two new laws? Is this positive for increasing investment in coal companies, especially in efforts to increase coal downstream?
Adaro Energy President Director Garibaldi Thohir or commonly called Boy Thohir also raised his voice in this regard.
Regarding the Law on Job Creation, one of which regulates the imposition of Value Added Tax (PPN) on coal, according to him, his party has no problem with this. This is because in the 1985-2000 period the government had imposed VAT on coal, but in 2001 it was changed to non-taxable goods (PPN). Therefore, according to him, the government and the House of Representatives (DPR) have included this clause only to clarify if coal is indeed a taxable item (BKP).
“Because other mineral products are also included in BKP, it’s funny that only coal is not BKP so far. If we ask the term the advantages and disadvantages, for us it is neutral because this is actually a taxable coal issue,” he explained in a virtual discussion with journalists to commemorate Adaro’s 28th Birthday on Tuesday (20/10/2020).
He said, if coal was only in the earth there would be no additional value. But because it has been excavated and processed, it is only natural that it should become a taxable item.
According to him, there is no way a government in any country wants to make trouble for its people. He believes that the purpose of the regulations made by the government and the DPR is good.
He further said that his party has no problem with the Law on Job Creation because most of the regulations related to coal are almost 99% regulated in the latest Minerba Law. As is known, the Minerba Law was passed by the DPR last May, prior to the enactment of the Job Creation Law which just happened on 5 October.
According to him, the Minerba Law also has a good impact on legal certainty for investors. Through the Minerba Law, the contract extension from the Coal Mining Exploitation Work Agreement (PKP2B) to a Special Mining Business License (IUPK) is guaranteed.
“The spirit is legal certainty. I appreciate the government and the DPR passing the Minerba Law,” he explained.
He further said that in the last 10-15 years, investors from abroad have rarely invested in the mineral and coal sector, because they are likely still waiting for legal certainty. According to him, the legal certainty that has been provided through the Minerba Law has a positive impact on investment, both from within the country and abroad.
The Minerba Law also states that in order to obtain a contract extension, coal mining companies must undertake downstreaming. Regarding this condition, Boy also provides support, as other countries also focus on their respective national interests.
“You can see, for example, how a country like America thinks about national interests rather than world interests, especially with this pandemic. In connection with that (downstream), I can understand how natural resources in the form of coal can be utilized by the interests of the Indonesian people. what the government wants is why there is downstreaming, “he explained.
(wia)
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