More protests emerged over controversial ministerial regulation

The new controversial Minister of Energy and Mineral Resources Regulation No 42/2017, which among others rules that changes in board of directors and share ownership of companies engaged in the country?s energy and mining sectors must obtain approval of the minister, has drawn more criticism from industry players.

Deputy Executive Director of the Indonesia Coal Mining Association (ICMA) Hendra Sinadia said that board changes and sale of company shares are categorized as corporate action. Requiring the minister approval will only hamper corporate actions, he said.

As reported on Friday, Minister of Energy and Mineral Resources Ignasius Jonan issued the new regulation to help bolster oversight of the country?s energy and mining sectors, ministry Spokesman Sujatmiko said, adding that the ministerial regulation merely reasserts stipulations set in various laws including Electricity Law, Oil and Gas Law, Mining Law, and Geothermal Law.

Industry players doubted whether the ministry has the capacity to fully implement the new regulation considering the huge number of industry players involved. Mining companies holding the IUP mining business license now total more than 10,000. There are also 34 mineral mining firms holding contract of work permit status, 73 coal miners holding coal contracts of work (PKP2B), 68 oil and gas production sharing contractors, and 40 private power producers.

Jonathan Handojo, Deputy Chairman of the Indonesia Refinery and Processing Companies Association (AP3I), suspected the minister issued the new regulation because the government has been often deceived by bogus companies.

Arthur Simatupang, Executive Chairman of the Indonesia Private Power Producers (APLSI) said that the new regulation would create fresh uncertainty for industry players. (*)