Mining Legal Conference

Regulatory changes in Mining Investment: What is Going on?
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Background

The government has introduced a number of recent regulatory changes in mining sector, including a new regulation that cap coal prices for domestic power plant at US$ 70 per ton Free on Board (FOB) vessel, far lower than the current coal price exceeding $100 per ton.

Under the new Decree, price of coal with calorific value of 6,322 GAR aimed for domestic power plants is limited at US$70 per ton, or equal to the government's monthly coal reference price (or HBA) if the reference price is below $70 per ton.

The mandatory coal price for domestic power plants is implemented starting March 12 through December 2019.

The government has also published the 2018-2027 electricity procurement business plan (or RUPTL) of state-owned electricity firm PT PLN, under which the total power plant installed capacity target has been significantly cut down to adjust to lower than previously anticipated electricity demand.

Under the RUPTL, PLN plans development of new power plants with a total capacity of 56 GW by 2027, down significantly from the 77.9 GW stated in the previous plan for the 2017-2026 period with coal portion down to 54.4 percent in 2025 from the 57.2 percent in 2017.

The government also introduced Ministerial Regulation No 11/2018 which among others governs mechanism of tender of mining areas, licensing and reporting mechanism. Under the regulation, the government divides mining areas to be offered to investors into two categories, namely mining business license area (WIUP), and special mining business license area (WIUPK).

Previously, the Ministry of Trade also issued the controversial regulation obliging the use of national shipping and insurance company for coal export. It is reported that the government would delay the implementation that previously slated to become effective starting in April 2018. No official announcement of the delay so far.

In other development, the Ministry of Energy and Mineral Resources recently also revoked dozens of regulations in coal and mineral sector, claimed as the government's move to help improve investment climate and simplifying licensing procedure in mining sector in Indonesia.

The one-day Mining Legal conference would present noted lawyers and practitioners to discuss the recent regulatory changes as considerations for existing and new investment in doing mining business.

The conference would elaborate on what legal implications are that needed to be anticipated from the recent regulatory changes? How to deal with the existing coal contract of supply as well as for long-term contract in the future.

Benefit of attending?

  • Understanding the latest regulatory changes following the revocation of dozens of ministerial regulations in mining sector.
  • Understanding the key provision of new policy on domestic market obligation for coal and coal price supplied to PLN
  • Explore the newly-issued 2018-2027 electricity procurement business plan (or RUPTL) of state-owned electricity firm PT PLN.
  • Understanding the new principle of  Power Purchase Agreements (PPA) under MEMR Regulation 10/2018.
  • What is the PLN's new strategy to secure the coal supply in long term through coal mining acquisition?
  • Understanding the new mechanism of tender of mining areas

Invited Speakers: *

* Subject to change

  • Sri Raharjo, Director of Coal Business Development at Directorate General of Mineral and Coal.
  • Jisman P. Hutajulu, Director of Program Development of Electricity at the Ministry of Energy and Mineral Resources.
  • Harlen, Head of Coal Unit at PLN
  • Bill Sullivan, Licensed Foreign Advocate, Christian Teo Purwono & Partners (In Association with Stephenson Harwood)
  • Philip Payne, Foreign Counsel of ABRN – Counselors at Law
  • Luke Devine, Foreign Legal Consultant, HHP Law Office
  • Haydn Dare, Partner (Senior International Counsel in Jakarta), Holman Fenwick Willan LLP.
  • Adri Kurnia, GM Legal of PT Kaltim Prima Coal (KPC) and Head Legal Committee at Indonesian Coal Mining Association (ICMA)
  • Arfidea Dwi Saraswati, Founding Partner, AKSET LAW- Natural Resources Focused Law Firm
  • Muhammad Karnova, Partner, Karnova & Co. Law Firm
  • Kirana D Sastrawijaya, Senior Partner of UMBRA – Strategic Legal Solutions.
  • Ratih Nawangsari, Oentoeng Suria & Partners
  • Arthur Simatupang, Executive Director of Indonesia Independent Power Producers Association (APLSI)
  • Adrian Lembong, Director of Adaro Power
  • Diyana Putri Alan, Senior Analyst at Asia Coal Markets, IHS Markit

Planned Agenda

8.30-9.00 Registration
9.00-9.10 Opening Speech from Conference Moderator, Hendra Sinadia, Executive Director of Indonesian Coal Mining Association (ICMA)
9.10-9.30 Opening Remark:
Government's future policy on coal mining industry in order to ensure sustainable supply of coal to PLN and domestic demand.

Speaker: Sri Raharjo, Director of Coal Business Development at Directorate General of Mineral and Coal.
9.30-9.50 Understanding the newly-published 2018-2027 electricity procurement business plan (or RUPTL), particularly on the development of coal-fired power plants – Opportunities and challenges and how the private sector playing significant role in this business plan.

Speaker: Jisman P. Hutajulu, Director of Program Development of Electricity at the Ministry of Energy and Mineral Resources.
9.50 – 10.10 Understanding the potential and prospect of coal-fired power plant project and trend of coal demand under the 2018-2027 electricity procurement business plan (or RUPTL).

Speaker: Harlen, Head of Coal Unit at PLN.
10.10- 10.30 Coffee Break
10.30 – 11.00 Understanding Presidential Regulation No. 13/2018 on new beneficial ownership rule. What are potential implications for energy and mining companies operating in Indonesia.

Speaker: Bill Sullivan, Senior Foreign Counsel with Christian Teo & Partners and Senior Adviser to Stephenson Harwood LLP.
11.00 – 11.30 Understanding MEMR Regulation 10/2018 on principles of Power Purchase Agreements (PPA) as amendment to the MERM Regulation No 10/2017.

A Game Changer for PPAs Bankability?

Speaker: Kirana D Sastrawijaya, Senior Partner of UMBRA – Strategic Legal Solutions.
11.30 -12.00 Ministry of Energy and Mineral Resources (MEMR) has recently revoked a number of regulations in mining sector. Exploring its potential impact on the existing mining companies and how to deal with the changes.

Speaker: Philip Payne, Foreign Counsel of ABRN – Counselors at Law
12,00 – 13.00 Lunch and networking
13.00 – 14.00 LEGAL HARD TALK on Ministerial Regulation on Coal Price for Domestic Coal Power Plant.
  • Overview of potential legal implication for coal supply contract to PLN.
  • Overview of HBA price for domestic coal power plant and HBA for other domestic market?
  • How mining companies adapting to potential changes of HBA for coal power plants.
  • What are the expected biggest challenges for coal mining?
Panelists:
  • Luke Devine, Foreign Legal Consultant, HHP Law Office
  • Haydn Dare, Partner (Senior International Counsel in Jakarta), Holman Fenwick Willan LLP.
  • Adri Kurnia, GM Legal of PT Kaltim Prima Coal (KPC) and Head Legal Committee at Indonesian Coal Mining Association (ICMA)
14.00 – 15.00 LEGAL HARD TALK on Ministerial Regulation No 11/2018 on tender mechanism of tender of mining areas and licensing. What are implication for existing and new mining companies?

Speakers:
  • Arfidea Dwi Saraswati, Founding Partner, AKSET LAW- Natural Resources Focused Law Firm
  • Guy Des Rosiers, Foreign Counsel, Makarim & Taira Law Firm
  • Ratih Nawangsari, Oentoeng Suria & Partners
15.00 – 15.20 Coffee Break
15.20-15.40 "Global Coal Supply and Demand in the Near-term"

Speaker: Diyana Putri Alan, Senior Analyst at Asia Coal Markets, IHS Markit
15.40 – 16.40 RUPTL TALK: What are the outlook of coal-fired power plant projects under the new RUPTL and coal price regulation for domestic power plant.

Panelists:
  • Arthur Simatupang, Executive Director of Indonesia Independent Power Producers Association (APLSI)
  • Adrian Lembong, Director of Adaro Power
  • Diyana Putri Alan, Senior Analyst at Asia Coal Markets, IHS Markit.

Date and Venue

Wednesday, April 25, 2018
Shangri-La Hotel, Jakarta

Investment

Rp.7.000.000,-* / Participant

*) Including Conference Materials, Coffee Breaks, Luncheon.

*) Cancellation Fee : 7 days before the event : 80%

Further Information

Telephone : +6221-722-6894
Email: businessevents@petromindo.com

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