Govt threatens PKP2B coal miners not to renew their contracts

The Ministry of Energy and Mineral Resources has threatened coal miners holding the coal contracts of work (also known as PKP2B) failing to sign into their amended contracts by the October deadline that the government would not renew the contracts once they expire, reports said on Monday.

Adhi Wibowo, Director of Coal Management and Development at the ministry, was quoted by Kontan and Bisnis Indonesia dailies as saying that out of 73 PKP2B coal miners, 61 have signed MoUs agreeing on the six points of contract renegotiation but have yet to sign the amended contracts. Meanwhile, the remainders have yet to conclude contract renegotiation process with the government.

He said that there are two major issues discouraging miners from signing into the amended contracts including taxation and divestment obligation. (*)