IMA-Daily Update Page 1

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APBI and IMA appreciate the royalty incentives for coal downstreaming in the Job Creation Law APBI dan IMA apresiasi insentif royalti untuk hilirisasi batubara di UU Cipta Kerja Foreigners Sell Vale (INCO) Shares Rp5.52 Trillion, Divestment to MIND ID Complete? Asing Jual Saham Vale (INCO) Rp5,52 Triliun, Divestasi ke MIND ID Rampung? Job Creation Law: There is Downstreaming, Coal Royalties Decrease to 0% UU Ciptaker: Ada Hilirisasi, Royalti Batu Bara Turun Jadi 0% Bumi Minerals will add a gold ore processing plant in Palu Bumi Minerals akan Tambah Pabrik Pengolahan Bijih Emas di Palu The Job Creation Law provides incentives for coal downstream royalties, said BUMI and ADRO UU Cipta Kerja beri insentif royalti hilirisasi batubara, ini kata BUMI dan ADRO Expansion of Environmentally Friendly Energy Projects, This is the List of PLTS Done by Bukit Asam (PTBA) Ekspansi Proyek Energi Ramah Lingkungan, Ini Daftar PLTS Garapan Bukit Asam (PTBA) Responding to the Fishermen's Demonstration, PT Timah Promises to Reorganize Mining in South Bangka Tanggapi Aksi Demo Nelayan, PT Timah Janji Akan Lakukan Penataan Kembali Pertambangan Di Basel Mining Sector Boosts NTB's Economy During the Pandemic Sektor Tambang Dorong Ekonomi NTB Saat Pandemi Not Tired of Raising Again, Coal Touches a Little More at US$ 62/ton Tak Bosan Naik Lagi, Batu Bara Sedikit Lagi Sentuh US$ 62/ton

Kontan Bisnis CNBC Indonesia Dunia Energi Kontan Bisnis Sonora.id (Bangka) Dunia Tambang CNBC Indonesia

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Tesla in discussion for major investment in Indonesia, a key nickel producer: report Nickel supply to drop by 2025 – Macquarie Newcrest, Encounter JV begins drilling at gold-copper project US August coal exports total 4.1 million mt, down 41.3% on year: Census Tesla in talks with BHP over nickel supply pact IEEFA U.S.: Renewables get an early start on beating coal generation

Teslarati Mining Weekly Australian Mining S&P Global Platts Mining.com IEEFA

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APBI and IMA appreciate the royalty incentives for coal down-

streaming in the Job Creation Law Reporter: Dimas Andi | Editor: Khomarul

Hidayat

THE INCENTIVE for the imposition of a

0% royalty for activities to increase the added value of coal in the Job Creation Law received responses from a number of representatives of national mining industry players.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia appreciated the provision of 0% royalties for business actors running the coal downstream business. The reason is, it has become a fact that building infrastructure and technology in the downstream coal sector requires a large investment.

These incentives will certainly make investment in increasing the added value of coal more economical and business-worthy. "The key word is economic value. The incentives given must have an impact on that," he added when contacted by Kontan.co.id, Tuesday (6/10).

He also assessed that the 0% royalty incentive is only one of the incentives that can affect the acceleration of coal downstream. There are still a number of incentives that can be given to business actors, both on a fiscal basis, such as reducing VAT or implementing tax holidays and non-fiscal, such as certainty in land permits or policy on prices for downstream coal products.

Such incentives indeed need to be prepared attractively because investment in the downstream coal sector is long term or more than 20 years. That way,...

APBI dan IMA apresiasi insentif royalti untuk hilirisasi batubara

di UU Cipta Kerja Reporter: Dimas Andi | Editor: Khomarul

Hidayat

ADANYA insentif pengenaan royalti 0%

untuk kegiatan peningkatan nilai tambah batubara di dalam Undang-Undang (UU) Cipta Kerja mendapat tanggapan dari sejumlah perwakilan pelaku industri pertambangan nasional.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengapresiasi atas pemberian royalti 0% bagi pelaku usaha yang menjalankan bisnis hilirisasi batubara. Pasalnya, sudah men-jadi fakta untuk membangun infrastruktur dan teknologi di sektor hilir batubara di-butuhkan investasi yang besar.

Insentif tersebut tentu akan membuat investasi peningkatan nilai tambah batu-bara menjadi lebih ekonomis dan layak secara bisnis. “Kata kuncinya di nilai ekonomis. Insentif yang diberikan harus bisa berdampak ke situ,” imbuh dia ketika dihubungi Kontan.co.id, Selasa (6/10).

Dia juga menilai, insentif royalti 0% hanya-lah salah satu insentif yang bisa ber-pengaruh pada percepatan hilirisasi batu-bara. Masih ada beberapa insentif yang dapat diberikan kepada pelaku usaha, baik secara fiskal seperti pengurangan PPN atau pemberlakuan tax holiday maupun secara nonfiskal seperti kepastian perizinan lahan atau kebijakan harga produk hilir batubara.

Insentif-insentif seperti itu memang perlu disiapkan secara menarik lantaran investasi di sektor hilir batubara bersifat jangka panjang atau lebih dari 20 tahun. Dengan begitu,...

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That way, business actors need facilities and a definite legal umbrella in conducting business activities.

"If the incentives are attractive and consistently implemented, investors will enter without being forced. So far, not many people want to work on the down-streaming of coal,” explained Hendra.

The same thing was expressed, the Acting Executive Director of the Indonesian Mining Association (IMA), Djoko Widajatno, assessed that the royalty exemption to 0% in the Job Creation Law is very beneficial for IMA members who run the coal downstream business, including holders of Coal Mining Concession Contracts (PKP2B) so far, it has been subject to a royalty fee of 13.5%.

"If the royalty value is set aside for down-stream investment, it will certainly increase the added value and have a big impact on investment in the sector," he said.

With the incentives for coal downstream activities, there will be opportunities for Indonesia to be able to meet domestic energy needs which have been imported so far so that it has an impact on saving the country's foreign exchange.

For example, coal gasification which produces Demethyl Ether (DME) product which is useful as a substitute for LPG, so that Indonesian LPG imports can be suppressed in the future.

Djoko believes that the biggest challenge is in readiness for downstream coal infrastructure for the sale or use of the results of downstream products of these commodities. In the case of DME, the product must be used immediately because its storage is very risky.

"The industry using the downstream products must be built together with the downstreaming of the coal itself, which is the realm of the basic industry," he said.

Dengan begitu, pelaku usaha butuh kemudahan dan payung hukum yang pasti dalam melakukan kegiatan bisnis.

“Kalau insentif-insenti f yang diberikan menarik dan konsisten penerapannya, tanpa dipaksa pun investor akan masuk. Sejauh ini kan belum banyak yang mau garap hilirisasi batubara,” terang Hendra.

Setali tiga uang, Pelaksana Harian Direktur Eksekutif Indonesia Mining Association (IMA) Djoko Widajatno menilai, pem-bebasan royalti menjadi 0% di dalam UU Cipta Kerja sangat bermanfaat bagi anggota IMA yang menjalankan bisnis hilirisasi batubara, termasuk pemegang Perjanjian Kontrak Pengusahaan Pertambangan Batu-bara (PKP2B) yang selama ini dikenakan beban royalti 13,5%.

“Kalau nilai royalti ini disisihkan untuk investasi hilirisasi tentunya akan memper-besar nilai tambah dan berdampak besar bagi investasi di sektor tersebut,” ujar dia.

Dengan adanya insentif untuk kegiatan hil irisas i batubara, maka akan terbuka kesempatan bagi Indonesia untuk dapat memenuhi kebutuhan energi di dalam negeri yang selama ini kerap diimpor sehingga ber-dampak pada penghematan devisa negara.

Misalnya, gasifikasi batubara yang meng-hasilkan produk Demethyl Ether (DME) yang berguna sebagai subtitusi LPG, sehingga impor LPG Indonesia bisa ditekan di masa mendatang.

Djoko berpendapat, tantangan terbesar hilirisasi batubara ada pada kesiapan infra-struktur untuk penjualan atau pemakaian hasil produk hilir komoditas tersebut. Dalam kasus DME, produk tersebut harus langsung dipakai karena penyimpanannya sangat berisiko.

“Industri pemakai produk hasil hilirisasi tersebut harus dibangun bersamaan dengan hilirisasi batubaranya itu sendiri, di mana ini adalah ranah industri dasar,” ungkapnya.

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Thus, the government actually needs to prepare fiscal incentives that can accelerate the provision of capital for basic industrial development. As a result, the synergy between the mining industry and the basic industries that are consumers of the downstream mining products can be realized.

Meanwhile, a mining law observer from Tarumanegara University, Ahmad Redi, said that the royalty exemption for business actors carrying out coal downstreaming would pose a risk of decreasing revenue for the state from the mining sector.

However, these risks are only short-term. If these incentives can be applied consistently and the downstream coal industry continues to grow significantly, the benefits for the country will be enormous in the long term.

"The cost of importing LPG, which has been burdening the state budget, can be reduced if the coal gasi fication industry has developed in Indonesia," he said.

Dengan demikian, sebenarnya pemerintah juga perlu menyiapkan insentif fiskal yang dapat mempercepat pengadaan modal pembangunan industri dasar. Alhasil , sinergi antara industri pertambangan maupun industri dasar yang jadi konsumen produk hilir tambang tersebut bisa diwujudkan.

Adapun pengamat hukum pertambangan dari Universitas Tarumanegara Ahmad Redi menyampaikan, pembebasan royalti bagi pelaku usaha yang menjalankan hilirisasi batubara akan mendatangkan risiko penurunan pendapatan bagi negara dari sektor tambang.

Namun, risiko tersebut hanya bersifat jangka pendek saja. Jika insentif ini bisa diterapkan secara konsisten dan industri hilir batubara terus tumbuh signifikan, maka manfaat yang dirasakan negara akan sangat besar secara jangka panjang.

“Biaya impor LPG yang selama ini mem-bebani APBN bisa diturunkan kalau industri gasifikasi batubara sudah berkem-bang di Indonesia,” tandasnya.

Foreigners Sell Vale (INCO) Shares Rp5.52 Trillion, Divestment to

MIND ID Complete? Finna U. Ulfah

FOREIGN investors recorded net sell

transactions in the shares of PT Vale Indonesia Tbk. in the negotiation market up to Rp 5.52 trillion in the first trading session today, Wednesday (7/10/2020).

Based on Bloomberg data, there are buying and selling transactions with the same value, amounting to Rp 5.52 trillion.

Asing Jual Saham Vale (INCO) Rp5,52 Triliun, Divestasi ke

MIND ID Rampung? Finna U. Ulfah

INVESTOR asing mencatatkan transaksi

net sell di saham PT Vale Indonesia Tbk. di pasar negosiasi hingga Rp5,52 triliun di sesi pertama perdagangan hari ini, Rabu (7/10/2020).

Berdasarkan data Bloomberg, terdapat transaksi jual dan beli dengan nilai yang sama, yaitu sebesar Rp5,52 triliun.

IMA-Daily Update Page 6

Selling transactions are made through PT Citigroup Sekuritas Indonesia, while

buying transactions are made through Danareksa Sekuritas.

Meanwhile, until 11.17 WIB, INCO's share

price fell 1.38 percent to the level of Rp3,570.

For information, on June 19, 2020, Vale Indonesia (INCO) has pressed a definitive

share sale and purchase agreement with SOE Mining Holding or MIND ID. Under the

agreement, Vale will release 20 percent of shares or the equivalent of 2 billion shares

to MIND ID.

The signing of the agreement is a continuation of the preliminary agreement

that was previously signed on October 11, 2019 as an obligation to divest INCO based

on a work contract with the Indonesian government for the sustainability of the

company's operations after 2025.

In the transaction, Vale Canada Limited

and Sumitomo Metal Mining Co., Ltd as the majority shareholder of INCO will release

their ownership of 14.9 percent and 5.1 percent respectively to MIND ID.

Thus, after the transaction is completed,

INCO's share ownership will change to Vale Canada Limited by 44.3 percent, MIND ID

by 20 percent, Sumitomo Metal Mining 15 percent, and the public by 20.7 percent.

MIND ID annexed 20 percent of INCO's

shares at a price of Rp 2,780 per share or Rp 5.52 trillion or equivalent to US$ 371

million. The transaction is targeted to be completed by the end of 2020. Editor: Rivki

Maulana

Transaksi jual dilakukan melalui PT Citigroup Sekuritas Indonesia, sedangkan transaksi beli dilakukan melalui Danareksa Sekuritas.

Adapun, hingga pukul 11.17 WIB harga saham INCO melemah 1,38 persen ke level Rp3.570.

Untuk diketahui, Pada 19 Juni 2020, Vale Indonesia (INCO) telah menekan per-janjian definitif jual beli saham dengan Holding BUMN Pertambangan atau MIND ID. Dalam perjanjian itu, Vale akan melepas 20 persen saham atausetara dengan 2 miliar saham ke MIND ID.

Penandatanganan perjanjian itu merupa-kan kelanjutan dari perjanjian penda-huluan yang sebelumnya ditandatangani pada 11 Oktober 2019 sebagai kewajiban divestasi INCO berdasarkan kontrak karya dengan pemerintah Indonesia untuk keberlanjutan operasi perseroan setelah 2025.

Dalam transaksi itu, Vale Canada Limited dan Sumitomo Metal Mining Co., Ltd sebagai pemegang saham mayoritas INCO akan melepas kepemilikannya masing-masing sebesar 14,9 persen dan 5,1 persen kepada MIND ID.

Dengan demikian, setelah transaksi selesai maka kepemilikan saham INCO akan ber-ubah menjadi Vale Canada Limited sebesar 44,3 persen, MIND ID sebanyak 20 persen, Sumitomo Metal Mining 15 persen, dan publik sebesar 20,7 persen.

MIND ID mencaplok 20 persen saham INCO dengan harga Rp2.780 per saham atau senilai Rp5,52 triliun atau setara US$371 juta. Transaksi itu ditargetkan akan selesai pada akhir 2020. Editor : Rivki Maulana

IMA-Daily Update Page 7

Job Creation Law: There is Downstreaming, Coal Royalties

Decrease to 0% Wilda Asmarini, CNBC Indonesia

THE HOUSE of Representatives (DPR) of

the Republic of Indonesia passed the Draft Law on Job Creation into Law yesterday, Monday (05/10/2020).

The ratification of the Job Creation Law has also resulted in a number of rejections from various groups, ranging from labor, civil society coalitions, to religious leaders. But on the other hand, this ratification brings the Jakarta Composite Index (JCI) trading until the first session of Tuesday (06/10/2020) green, up 1.03% at the level of 5,009.88, above the psychological level of 5,000.

Market players responded positively to the ratification of the Job Creation Bill into Law because it was thought that it would clear up overlapping regulations and provide clarity on investment.

In terms of the mining sector, the Job Creation Law seems to benefit coal entre-preneurs. Based on the Job Creation Law document received by CNBC Indonesia, on page 182, to be precise Article 39 which amends several provisions in Law No.3 of 2020 concerning Minerals and Coal, it is stated that between Articles 128 and 129 of the Minerba Law one article is inserted, namely Article 128 A. The following reads:

1. Business actors that increase the added value of coal as referred to in Article 103, may be given certain treatment of the state revenue obligation as referred to in Article 128.

UU Ciptaker: Ada Hilirisasi, Royalti Batu Bara Turun Jadi

0% Wilda Asmarini, CNBC Indonesia

DEWAN Perwakilan Rakyat (DPR) RI telah

mengesahkan Rancangan Undang-Undang tentang Cipta Kerja menjadi Undang-Undang pada kemarin, Senin (05/10/2020).

Pengesahan UU Cipta Kerja ini pun menuai sejumlah penolakan dari berbagai kalangan, mulai dari buruh, koalisi masyarakat sipil, hingga pemuka agama. Namun di sisi lain, pengesahan ini membawa Indeks Harga Saham Gabungan (IHSG) pada perdagangan hingga sesi pertama Selasa (06/10/2020) hijau, naik 1,03% di level 5.009,88, di atas level psikologis 5.000.

Para pelaku pasar merespons positif atas disahkannya RUU Cipta Kerja ini menjadi UU karena dianggap akan membereskan aturan tumpang tindih dan memberikan kejelasan investasi.

Dari sisi sektor pertambangan, UU Cipta Kerja ini terlihat menguntungkan pengusaha batu bara. Berdasarkan dokumen UU Cipta Kerja yang diterima CNBC Indonesia, pada halaman 182, tepatnya Pasal 39 yang mengubah beberapa ketentuan dalam UU No.3 tahun 2020 tentang Mineral dan Batu Bara, disebutkan bahwa di antara Pasal 128 dan 129 UU Minerba disisipkan satu pasal yakni Pasal 128 A. Berikut bunyinya:

1. Pelaku usaha yang melakukan pening-katan nilai tambah batu bara sebagaimana dimaksud dalam Pasal 103, dapat di-berikan perlakuan tertentu terhadap kewajiban penerimaan negara sebagai-mana dimaksud dalam Pasal 128.

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(2) The provision of certain treatment on the state revenue obligation as referred to in paragraph (1) for the activity of increasing the added value of coal may take the form of the imposition of a royalty of 0% (zero percent).

(3) Further provisions regarding certain treatment as referred to in paragraph (1) shall be regulated in a Government Regulation.

Based on Law No.3 of 2020 concerning Minerba, Article 102 reads "Holders of IUP or IUPK at the stage of production operations can develop and or utilize coal."

Meanwhile, when viewed from the document Draft Government Regulation on the Implementation of Mineral and Coal Mining Business Activities, it is stated that what is meant by "Coal development and/or utilization activities are in the form of:

a. coal development which includes:

1. making coke (coking);

2. coal liquefaction; and

3. coal gasification including under-ground coal gasification;

b. utilization of Coal through the construc-tion of a new Steam Power Plant (PLTU) at the mouth of the mine for public use.

Does this mean that for coal miners who carry out a coal downstream program, including building a Mine-Mouth PLTU, the coal sold can be subject to 0% royalty or that means it is exempted from the obligation to pay royalties?

Based on Government Regulation no. 81 of 2019 concerning Types and Rates of Non-Tax State Revenues Applicable to the Ministry of EMR, coal royalties for IUP holders vary from 3%-7% for open pit mining, among others 3% of the selling price per tonnes...

(2) Pemberian perlakuan tertentu terhadap kewajiban penerimaan negara sebagai-mana dimaksud pada ayat (1) untuk kegiatan peningkatan nilai tambah batu bara dapat berupa pengenaan royalti sebesar 0% (nol persen).

(3) Ketentuan lebih lanjut mengenai per-lakuan tertentu sebagaimana dimaksud pada ayat (1) diatur dengan Peraturan Pemerintah.

Berdasarkan UU No.3 tahun 2020 tentang Minerba, Pasal 102 berbunyi "Pemegang IUP atau IUPK pada tahap kegiatan operasi produksi dapat melakukan pengembangan dan atau pemanfaatan batu bara."

Sementara bila dilihat dari dokumen Rancangan Peraturan Pemerintah tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batu Bara, disebutkan bahwa yang dimaksud dengan "Kegiatan pengembangan dan atau pemanfaatan batu bara berupa:

a. pengembangan Batubara yang meliputi: 1. pembuatan kokas (coking); 2. pencairan batubara (coal liquefaction); dan 3. gasifikasi batubara (coal gasification) ter-

masuk underground coal gasification;

b. pemanfaatan batubara melalui pem-bangunan sendiri Pembangkit Listrik Tenaga Uap (PLTU) baru di mulut tambang untuk kepentingan umum.

Apa ini artinya bagi penambang batu bara yang melaksanakan program hilirisasi batu bara, termasuk membangun PLTU Mulut Tambang, maka batu bara yang dijual bisa dikenakan royalti 0% atau artinya dibebas-kan dari kewajiban pembayaran royalti?

Berdasarkan Peraturan Pemerintah No. 81 tahun 2019 tentang Jenis dan Tarif Pene-rimaan Negara Bukan Pajak yang Berlaku pada Kementerian Energi dan Sumber Daya Mineral, royalti batu bara bagi pemegang IUP beragam dari 3%-7% untuk tambang terbuka (open pit), antara lain 3% dari harga jual per ton...

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among others 3% of the selling price per tonnes for coal calories less than or equal to 4,700 Kcal/kg, 5% of the selling price per ton for coal calorie levels above 4,700-5,700 Kcal/kg, and 7% of the selling price per ton for coal calories above or equal to 5,700 Kcal/kg.

Meanwhile, for underground mining, royalties are imposed at 2% of the selling price per ton for calories below 4,700 Kcal/kg, 4% of the selling price per ton for calories of more than 4,700-5,700 Kcal/kg, and 6 % for a calorie level above or equal to 5,700 Kcal/kg.

Meanwhile, coal royalty for Coal Mining Concession Work Agreement (PKP2B) holders is currently still charged at 13.5% of the selling price per ton. (wia)

antara lain 3% dari harga jual per ton untuk kalori batu bara kurang dari atau sama dengan 4.700 Kkal/kg, 5% dari harga jual per ton untuk tingkat kalori batu bara di atas 4.700-5.700 Kkal/kg, dan 7% dari harga jual per ton bagi kalori batu bara di atas atau sama dengan 5.700 Kkal/kg.

Sementara untuk tambang di bawah tanah (underground), royalti dikenakan 2% dari harga jual per ton untuk kalori di bawah sama dengan 4.700 Kkal/kg, 4% dari harga jual per ton untuk kalori lebih dari 4.700-5.700 Kkal/kg, dan 6% untuk tingkat kalori di atas atau sama dengan 5.700 Kkal/kg.

Sementara royalti batu bara untuk pemegang Perjanjian Karya Pengusahaan Pertambangan Batu Bara (PKP2B) saat ini masih dikenakan sebesar 13,5% dari harga jual per ton. (wia)

Bumi Minerals will add a gold ore processing plant in Palu

Yurika

PT BUMI Resources Minerals Tbk (BRMS)

plans to increase capital with Pre-emptive Rights (PMHMETD) as an effort to fund the company's business development. PMHMETD proceeds will be allocated to finance the construction of additional processing plants with a production capacity of 4,000 tons of gold ore per day. The plant is required to process gold ore from mining at the prospect Hill Reef location in Palu, Central Sulawesi.

"Apart from that, for the construction of supporting facilities and purchasing mining equipment, drilling activities with the aim of increasing the amount of gold and silver ore reserves in the prospect in Palu, and to increase the amount of...

Bumi Minerals akan Tambah Pabrik Pengolahan Bijih Emas di Palu

Yurika

PT BUMI Resources Minerals Tbk (BRMS)

berencana menambah modal dengan Hak Memesan Efek Terlebih Dahulu (PMHMETD) sebagai upaya mendanai pengembangan bisnis perusahaan. Dana hasil PMHMETD akan dialokasikan untuk mendanai pem-bangunan tambahan pabrik pengolahan dengan kapasitas produksi 4.000 ton bijih emas per hari. Pabrik tersebut diperlukan untuk mengolah bijih emas dari penam-bangan di prospek lokasi Hill Reef di Palu, Sulawesi Tengah.

“Selain itu, juga untuk pembangunan fasilitas pendukung dan pembelian peralatan penam-bangan, aktifitas pengeboran dengan tujuan untuk menambah jumlah cadangan bijih emas dan perak di prospek di Palu, dan untuk menambah jumlah...

IMA-Daily Update Page 10

and to increase the amount of copper and gold ore reserves in the prospect in Gorontalo," said Herwin Hidayat, Director & Investor Relations of Bumi Minerals, Tuesday (6/10).

Herwin added, PMHMETD is also for the settlement of business invoices related to the construction of an existing factory with a capacity of 500 tons of gold ore per day (already in operation) to facilitate the operation of the prospect at the River Reef (Palu) location as well as the development of gold and silver ore prospects. at the Motomboto location (Gorontalo). Another allocation is as working capital financing for operational activities related to the gold and silver mining project operated by PT Citra Palu Minerals (Pali), and the gold and silver copper mining project operated by PT Gorontalo Minerals (Gorontalo).

Herwin emphasized that the company can realize several benefits with the fresh funds from the PMHMETD plan. "With the addition of a processing plant with a larger capacity, the company can increase the gold and silver production volume from the mining project in Palu," he said.

Another advantage is that additional drilling activities are expected to increase the amount of gold and silver ore reserves in Palu and increase the amount of copper, gold and silver ore reserves in Gorontalo. Meanwhile, the increase in production is expected to have a positive impact on the company's financial performance.

Meanwhile, the increase in reserves is expected to increase the productive life of the mine from the projects operated by Bumi Minerals.

"The advantages above are expected to add value to shareholders in the near future," said Herwin. (RA)

dan untuk menambah jumlah cadangan bijih tembaga dan emas di prospek di Gorontalo,” ungkap Herwin Hidayat, Direktur & Investor Relations Bumi Minerals, Selasa (6/10).

Herwin menambahkan, PMHMETD juga untuk pelunasan tagihan usaha terkait dengan konstruksi atas pabrik yang ada saat ini dengan kapasitas 500 ton bijih emas per hari (sudah beroperasi) untuk memfasilitasi kegiatan operasi dari prospek di lokasi River Reef (Palu) serta pengembangan prospek bijih emas dan perak di lokasi Motomboto (Gorontalo). Alokasi lainnya adalah sebagai pembiayaan modal kerja untuk kegiatan operasional terkait dengan proyek tambang emas dan perak yang dioperasikan oleh PT Citra Palu Minerals (Pali), dan proyek tambang tembaga emas, perak yang di-operasikan oleh PT Gorontalo Minerals (Gorontalo).

Herwin menekankan bahwa perusahaan dapat merealisasikan beberapa keuntungan dengan adanya dana segar dari rencana PMHMETD. “Dengan adanya tambahan pabrik pengolahan dengan kapasitas yang lebih besar, maka perusahaan dapat mening-katkan volume produksi emas dan perak dari proyek tambang di Palu,” kata dia.

Keuntungan lainnya, tambahan aktifitas pengeboran diharapkan dapat menambah jumlah cadangan bijih emas dan perak di Palu dan dapat menambah jumlah cadangan bijih tembaga, emas, perak di Gorontalo. Sementara itu, kenaikan produksi diharap-kan dapat berdampak positif terhadap kinerja keuangan perusahaan.

Sedangkan untuk peningkatan cadangan diharapkan akan menambah umur produktif tambang dari proyek-proyek yang di-operasikan Bumi Minerals.

“Keuntungan-keuntungan diatas tersebut diharapkan dapat menambah nilai bagi para pemegang saham dalam waktu dekat ini,” tandas Herwin. (RA)

IMA-Daily Update Page 11

The Job Creation Law provides incentives for coal downstream royalties, said BUMI and ADRO

Reporter: Dimas Andi | Editor: Khomarul Hidayat

THE JOB Creation Law allows for the

provision of 0% royalties for business actors who increase the added value of

coal. The existence of these incentives has received responses from a number of coal

producers in Indonesia.

PT Adaro Energy Tbk (ADRO) actually has

not been able to talk much about the impact of the royalty imposition on the

sustainability of investment in the down-stream sector and the company's overall

performance in the future.

However, Adaro Energy's Head of

Corporate Communication, Febriati Nadira, ensured that ADRO as a coal producer and

contractor as well as a public company always applies the principles of good

corporate governance.

As a result, ADRO will certainly comply

with and follow the stipulated regulations, including the royalty provisions in the

downstream coal sector which are regulated in the Job Creation Law. "We will

follow the prevailing regulations by optimizing the use of reserves to increase

state revenues and develop companies," she said, Tuesday (6/10).

For information, ADRO has carried out activities to increase the added value of

coal in the form of the use of coking coal mines through its subsidiary PT Adaro

Metcoal Companies (AMC).

UU Cipta Kerja beri insentif royalti hilirisasi batubara, ini

kata BUMI dan ADRO Reporter: Dimas Andi | Editor: Khomarul

Hidayat

UNDANG-Undang (UU) Cipta Kerja me-

mungkinkan adanya pemberian royalti 0% bagi pelaku usaha yang melakukan peningkatan nilai tambah batubara. Keberadaan insentif tersebut mendapat tanggapan dari sejumlah produsen batu-bara di Indonesia.

PT Adaro Energy Tbk (ADRO) sebenarnya belum bisa bicara banyak soal dampak pengenaan royalti tersebut terhadap kelangsungan investasi di sektor hilir maupun kinerja perusahaan secara kese-luruhan di masa mendatang.

Kendati demikian, Head of Corporate Communication Adaro Energy Febriati Nadira memastikan, ADRO selaku salah satu produsen dan kontraktor batubara sekaligus perusahaan publik senantiasa menerapkan prinsip tata kelola per-usahaan yang baik.

Alhasil, ADRO tentu akan mematuhi dan mengikuti regulasi yang ditetapkan, ter-masuk ketentuan royalti di sektor hilir batubara yang diatur dalam UU Cipta Kerja. “Kami akan mengikuti aturan yang berlaku dengan melaksanakan optimalisasi pemanfaatan cadangan untuk peningkatan penerimaan negara dan pengembangan perusahaan,” ujarnya, Selasa (6/10).

Sebagai informasi, ADRO telah menjalan-kan kegiatan peningkatan nilai tambah batubara berupa pemanfaatan tambang batubara kokas lewat anak usahanya PT Adaro Metcoal Companies (AMC).

IMA-Daily Update Page 12

Quoting ADRO's quarterly report, AMC recorded coal production and sales at the level of 0.72 million tons, up 20% (yoy) and 6% (yoy). AMC has started production of hard coking coal from the Lampunut mine in the Maruwai concession.

In the second quarter, AMC made its first shipment of coking coal to its customers in Japan. The company has also sold the coal to China and India.

Contacted separately, the Director and Corporate Secretary of PT Bumi Resources Tbk, Dileep Srivastava, welcomed positively the 0% royalty incentive policy for business actors operating downstream coal businesses in the Job Creation Law. The incentive is considered to be able to help industry players, including the issuer coded BUMI shares, to continue developing coal downstream.

Unfortunately, he could not yet discuss the impact of these incentives on BUMI's business conditions and prospects. "For the time being we should not speculate," he said today.

What is clear, BUMI will try to complete a number of projects related to increasing the added value of coal.

For example, the construction of a coal-to-methanol production facility in East Kalimantan is targeted for completion in 2024. This project is the result of cooperation between the Bakrie Group through PT Bakrie Capital Indonesia with Ithaca Resources and Air Products with an investment value of around US$ 2 billion. BUMI itself will supply around 6 million tons of coal for the facility per year.

In addition, BUMI is also developing a steam power plant (PLTU) with a capacity of 64 megawatts (MW) located around the mining area of its subsidiary, Kaltim Prima Coal (KPC).

Mengutip laporan kuartalan ADRO, AMC men-catatkan produksi dan penjualan batubara sama-sama di level 0,72 juta ton atau naik 20% (yoy) dan 6% (yoy). AMC telah memulai produksi batubara kokas keras dari tambang Lampunut dalam konsensi Maruwai.

Di kuartal kedua lalu, AMC melakukan pengiriman pertama batubara kokas ke pelanggannya di Jepang. Perusahaan ini juga telah menjual batubara tersebut ke China dan India.

Dihubungi terpisah, Direktur dan Sekretaris Perusahaan PT Bumi Resources Tbk Dileep Srivastava menyambut positif kebijakan insentif royalti 0% bagi pelaku usaha yang menjalani bisnis hilir batubara dalam UU Cipta Kerja. Insentif tersebut dinilai akan membantu pelaku industri, termasuk emiten berkode saham BUMI tersebut, untuk terus mengembangkan hilirisasi batubara.

Sayangnya, ia belum bisa membahas lebih dalam soal dampak-dampak insentif tersebut terhadap kondisi dan prospek bisnis BUMI. “Untuk sementara sebaiknya kami tidak berspekulasi,” kata dia, hari ini.

Yang terang, BUMI akan berusaha menye-lesaikan sejumlah proyek yang berkaitan dengan peningkatan nilai tambah batubara.

Misalnya, pembangunan fasilitas produksi batubara menjadi metanol di Kalimantan Timur yang ditargetkan selesai di tahun 2024 mendatang. Proyek ini hasil kerja sama Bakrie Group melalui PT Bakrie Capital Indonesia dengan Ithaca Resources dan Air Products dengan nilai investasi sekitar US$ 2 miliar. BUMI sendiri nantinya akan me-masok batubara untuk fasilitas tersebut sekitar 6 juta ton per tahun.

Selain itu, BUMI juga mengembangkan pembangkit listrik tenaga uap (PLTU) ber-kapasitas 64 megawatt (MW) yang berada di sekitar area pertambangan anak usahanya, Kaltim Prima Coal (KPC).

IMA-Daily Update Page 13

Not to be missed, Dileep also said that his party was waiting for the final official and firm decision from the government regarding the extension of the Arutmin Indonesia Coal Mining Concession Contract (PKP2B) permit to become a Special Mining Business License (IUPK). This is considering the end of November, Arutmin Indonesia's PKP2B permit will end.

Tak ketinggalan, Dileep juga mengatakan, pihaknya tengah menunggu keputusan akhir yang resmi dan tegas dari pemerintah terkait perpanjangan izin Perjanjian Kontrak Pengusahaan Pertambangan Batu-bara (PKP2B) Arutmin Indonesia menjadi Izin Usaha Pertambangan Khusus (IUPK). Ini mengingat akhir November nanti izin PKP2B Arutmin Indonesia akan berakhir.

Expansion of Environmentally Friendly Energy Projects, This is the List of PLTS Done by Bukit

Asam (PTBA) Finna U. Ulfah

THE COAL mining company, PT Bukit Asam Tbk., is increasingly aggressively diversifying its business, one of which is through the development of a solar power plant or PLTS project.

Bukit Asam Corporate Secretary Apollonius Andwie C. said that the company has a vision to become a world-class energy company that cares for the environment. This vision is trying to be realized by diversifying the business and downstreaming the coal industry.

Meanwhile, one of the business diver-sification options for the issuer coded as PTBA shares is the development of the new and renewable energy sector, which is also the government's focus in providing more environmentally friendly energy for the Indonesian people.

"PTBA wants to take part in the PLTS development roadmap," said Apollo as quoted from his official statement, Tuesday (6/10/2020).

Ekspansi Proyek Energi Ramah Lingkungan, Ini Daftar PLTS Garapan Bukit Asam (PTBA)

Finna U. Ulfah

EMITEN pertambangan batu bara, PT

Bukit Asam Tbk., semakin gencar melaku-

kan diversifikasi bisnis, salah satunya melalui pengembangan proyek pem-

bangkit listrik tenaga surya atau PLTS.

Sekretaris Perusahaan Bukit Asam

Apollonius Andwie C. mengatakan bahwa perseroan memiliki visi untuk menjadi

perusahaan energi kelas dunia yang peduli lingkungan. Visi itu coba diwujudkan

dengan melakukan diversifikasi bisnis dan hilirisasi industri batu bara.

Adapun, salah satu diversifikasi bisnis yang

menjadi pilihan emiten berkode saham PTBA itu adalah pengembangan sektor

energi baru dan terbarukan, yang juga merupakan fokus pemerintah dalam

menyediakan energi lebih ramah ling-kungan untuk rakyat Indonesia.

“PTBA ingin mengambil bagian dalam

roadmap pengembangan PLTS,” ujar Apollo seperti dikutip dari keterangan

resminya, Selasa (6/10/2020).

IMA-Daily Update Page 14

The company also has several PLTS development projects for irrigation pumps that are included in the Corporate Social Responsibility (CSR) program.

The projects include Irrigation PLTS Pesawaran, Lampung with a capacity of 38,500 watts which are operated through a 4x4 meter control panel house, 140 pieces of solar panels, and 50 meters of piping and Irrigation PLTS Tanjung Raja with a capacity of 18.7 kW which uses 140 pieces of solar panels.

Then there is Irrigation PLTS Talawi, Sawahlunto with a capacity of 16.5 kW which is operated through 1 unit control panel house, 142 pieces of solar panels, and 1.2 km of piping.

In addition, there is a PLTS assistance project for the Az-Zawiyah Foundation in Tanjung Batu Village, Ogan Ilir Regency.

The electricity generated by the PLTS is 6 kWp or equivalent to 6,849 watts, while the electricity required by the Foundation is around 5,520 watts.

The assistance consists of 18 solar panels, 2 inverter units, 8 battery units, 1 unit electric panel and 1 set of cables with a capacity of 7 kWp.

Commercially, recently PTBA built PLTS on the roof of the Airport Operation Control Center (AOCC) building at Soekarno Hatta Airport, Tangerang, Banten. The plant with a capacity of 241 kilowatt peak (kWp) will fully start operating on October 1, 2020.

PTBA installed 720 panels on the roof of the AOCC building for that much electricity and later PLTS will be operated directly by the company. The construction of this EBT generator is also collaborating with a subsidiary of PT LEN Industri, namely PT Surya Energi Indotama.

Perseroan pun telah memiliki beberapa proyek pengembangan PLTS untuk pompa irigasi yang masuk dalam program Corporate Social Responsibility (CSR).

Proyek tersebut antara lain, PLTS Irigasi Pesawaran, Lampung berkapasitas 38.500 watt yang dioperasikan melalui rumah panel kontrol seluas 4x4 meter, 140 keping panel surya, dan pipanisasi sepanjang 50 meter dan PLTS Irigasi Tanjung Raja berkapasitas 18,7 kW yang menggunakan 140 keping panel surya.

Kemudian terdapat, PLTS Irigasi Talawi, Sawahlunto berkapasitas 16,5 kW yang dioperasikan melalui rumah panel kontrol 1 unit, 142 keping panel surya, dan pipa-nisasi sepanjang 1,2 km.

Selain itu, terdapat proyek Bantuan PLTS untuk Yayasan Az-Zawiyah di Desa Tanjung Batu Kabupaten Ogan Ilir

Listrik yang dihasilkan oleh PLTS itu adalah 6 kWp atau setara dengan 6.849 watt, sedangkan kebutuhan listrik yang diperlukan oleh Yayasan tersebut adalah sekitar 5.520 watt.

Bantuan tersebut terdiri dari 18 keping panel surya, 2 unit inverter, 8 unit baterai, panel listrik 1 unit dan 1 set kabel dengan kapasitas 7 kWp.

Secara komersil, belum lama ini PTBA membangun PLTS di atap gedung Airport Operation Control Center (AOCC) Bandara Soekarno Hatta Tangerang, Banten. Pembangkit dengan kapasitas 241 kilowatt peak (kWp) akan mulai beroperasi penuh pada 1 Oktober 2020 nanti.

PTBA memasang 720 panel di atap gedung AOCC untuk listrik sebesar itu dan nanti-nya PLTS akan dioperasikan langsung oleh perseroan. Pembangunan pembangkit EBT ini juga menggandeng anak usaha PT LEN Industri, yakni PT Surya Energi Indotama.

IMA-Daily Update Page 15

In the future, PTBA plans to work on a PLTS development project on post-mining land owned by the company in Ombilin, West Sumatra.

The mining area that has been designated by UNESCO as one of the world heritage sites will be installed with a PLTS with a capacity of up to 200 MW.

PLTS construction is carried out in two stages, and the first phase of construction is targeted to be completed with a capacity of up to 100 Megawatts (MW). The construction phase I is currently in the planning and study stages.

Meanwhile, the second phase of develop-ment is targeted to be completed in 2022, so that the total PLTS capacity can reach 200 Megawatts. Editor: Rivki Maulana

Ke depannya, PTBA berencana menggarap proyek pengembangan PLTS di lahan pasca tambang milik perusahaan yang berada di Ombilin, Sumatera Barat.

Lahan tambang yang sudah ditetapkan oleh UNESCO sebagai salah satu world heritage ini akan terpasang PLTS dengan kapasitas mencapai 200 MW.

Konstruksi PLTS dilakukan dalam dua tahap, dan pembangunan tahap pertama ditargetkan bisa rampung dengan kapa-sitas mencapai 100 Megawatt (MW). Pem-bangunan tahap I saat ini dalam tahap perencanaan dan studi.

Sementara itu, pembangunan tahap II di-targetkan rampung pada 2022, sehingga total kapasitas PLTS bisa mencapai 200 Megawatt. Editor : Rivki Maulana

Responding to the Fishermen's Demonstration, PT Timah

Promises to Reorganize Mining

in South Bangka

REGARDING the peaceful action carried

out by residents of the Toboali fishing village of South Bangka (Basel), PT Timah will cooperate with the National Police and the Bangka Belitung Provincial Government in carrying out the restructuring of mining in South Bangka.

This was revealed by the head of communication at PT. Timah, Anggi Siahaan to Sonorabangka.id when confirmed. Tuesday (6/10/2020).

Peaceful action like this is not prohibited by the state nor by PT. Timah, please if the community wants to convey their aspirations.

Tanggapi Aksi Demo Nelayan, PT Timah Janji Akan Lakukan

Penataan Kembali

Pertambangan Di Basel

TERKAIT aksi damai yang dilakukan oleh

warga kampung nelayan Toboali Bangka Selatan, PT Timah akan bekerjasama dengan pihak Polri dan Pemerintah Provinsi Bangka Belitung dalam melakukan penataan kembali pertambangan di Bangka Selatan.

Hal itu diungkapkan kepala bidang komuni-kasi PT. Timah, Anggi Siahaan kepada Sonorabangka.id ketika dikonfirmasi. Selasa (6/10/2020).

Aksi Damai seperti ini tidak dilarang oleh negara begitu juga oleh PT. Timah, silahkan jika masyarakat yang mau menyampaikan aspirasinya.

IMA-Daily Update Page 16

"We do not prohibit people or groups of people from expressing their aspirations because there are regulations, we also thank the police, especially the Babel Regional Police for maintaining security so that conditions are conducive and the delivery of aspirations runs smoothly," explained Anggi Siahaan.

Anggi emphasized that the input like this will have a positive impact and will reorganize the cooperation with the Police and the Babel Provincial Government as to what the policy will be.

"We will convey all the aspirations to the leadership and will cooperate with the Regional Police of Babel and the Provincial Government of Babel in reorganizing so that the Basel people are conducive," he concluded. Edwin

“Kami tidak melarang orang atau seke-lompok masyarakat untuk menyampaikan aspirasi karena ada regulasinya, kami juga mengucapkan terima kasih kepada pihak kepolisian khususnya Polda Babel yang telah menjaga keamanan sehingga kondisi kondusif dan penyampaian aspirasi berjalan lancar,” jelas Anggi Siahaan.

Anggi menegaskan dengan adanya masukan seperti ini akan memberi dampak positif dan akan menata kembali bekerjasama dengan pihak Polri dan Pemprov Babel seperti apa kebijakan nantinya.

“Semua aspirasi yang masuk akan kami sampaikan kepada pimpinan dan akan bekerjasama dengan pihak Polda Babel dan Pemprov Babel dalam menata ulang agar masyarakat Basel kondusif,” pungkasnya. Edwin

Mining Sector Boosts NTB's Economy During the Pandemic Author: Edo Fernando, Editor: Ocky PR.

THE SIGNS of a recession in Indonesia are

increasingly evident. In the third quarter of this year, Minister of Finance Sri Mulyani Indrawati said that the country is certain to experience an economic recession. From calculations carried out by the govern-ment, domestic economic growth is predicted to contract in the range of 0.1 to 0.2 percent.

In this very depressed condition, the government also acknowledges that the mining sector is one of the ones that can carry out activities optimally. One example that is used by the government is what happened in West Nusa Tenggara (NTB).

Sektor Tambang Dorong Ekonomi NTB Saat Pandemi

Penulis : Edo Fernando, Editor : Ocky PR.

TANDA-tanda resesi di Indonesia sudah semakin nyata kehadirannya. Pada kuartal ketiga tahun ini, Menteri Keuangan Sri Mulyani Indrawati mengatakan bahwa negara ini dipastikan akan mengalami resesi eko-nomi. Dari hitung-hitungan yang dilakukan oleh pemerintah, pertumbuhan perekonomian dalam negeri diperkirakan akan mengalami kontraksi pada kisaran 0,1 hingga 0,2 persen.

Dalam kondisi yang serba tertekan ini, pemerintah pun mengakui bahwa sektor pertambangan menjadi salah satu yang bisa beraktivitas secara maksimal. Salah satu yang dijadikan contoh oleh pemerintah adalah seperti yang terjadi di Nusa Tenggara Barat (NTB).

IMA-Daily Update Page 17

Investment realization as well as the performance of the mining sector is the most significant that helps the region's economy.

It is known that 50 percent of the total investment value that came into NTB in the first quarter came from mining.

The mining sector has been the main foundation of NTB's economy. In the report for the second quarter of this year, there was an increase in growth in the mining sector by 47.78 which was able to hold back the economic downturn in NTB. As reported, NTB's economic growth in the second quarter contracted by 1.4 percent. If it is not supported by the mining sector, the contraction could reach 7.97 percent.

The highest contributor to the mining sector in NTB is the Batu Hijau Mine, which is owned by Amman Mineral. Unlike most, when the pandemic outbreak hit, the productivity of the mine actually increased. Even for that period, the company's electricity commodity productivity was the highest since 1999.

He explained that the main key to increasing productivity was none other than the implementation of strict health protocols and high discipline. So that all elements of the company can work together even in difficult conditions.

Regarding the implementation of strict health protocols, Amman Mineral is known to have collaborated with a number of hotels in Mataram, which were later used as a centralized isolation area.

With this cooperation, in addition to preventing the spread of a pandemic outbreak, it will also encourage the movement of the economy, especially in the tourism sector. Meanwhile, on a much larger scale, Amman Mineral has been listed as the second largest contributor to Non-Tax State Revenue in Indonesia for 2019.

Realisasi investasi dan juga kinerja sektor pertambangan menjadi yang paling signifikan yang membantu perekonomian wilayah ter-sebut.

Diketahui, total nilai investasi yang masuk ke NTB pada triwulan pertama sebanyak 50 persennya berasal dari pertambangan.

Sektor pertambangan selama ini memang menjadi pondasi utama ekonomi NTB. Dalam laporan untuk triwulan kedua tahun ini, terjadi peningkatan pertumbuhan pada sektor pertam-bangan sebesar 47,78 yang mampu menahan laju kemerosotan ekonomi di NTB. Seperti yang diberitakan, pertumbuhan ekonomi NTB pada triwulan kedua tersebut, mengalami kontraksi sebanyak 1,4 persen. Jika tidak didukung oleh sektor pertambangan, maka kontraksinya bisa mencapai angka 7,97 persen.

Kontributor tertinggi dalam sektor pertam-bangan di NTB, dicatatkan oleh Tambang Batu Hijau yang dimiliki oleh Amman Mineral. Berbeda dengan kebanyakan, pada saat wabah pandemi menyerang, produktivitas tambang tersebut justru mengalami peningkatan. Bahkan untuk periode tersebut, produktivitas komo-ditas listrik perusahaan menjadi yang tertinggi sejak tahun 1999.

Pihaknya menjelaskan jika kunci utama dari peningkatan produktivitas itu tak lain karena adanya penerapan protokol kesehatan yang ketat serta disiplin yang tinggi. Sehingga seluruh elemen perusahaan bisa bekerja bersama dalam kondisi sulit sekalipun.

Terkait dengan penerapan protokol kesehatan yang ketat, Amman Mineral diketahui juga telah melakukan kerjasama dengan sejumlah hotel yang ada di Mataram, yang kemudian dijadikan sebagai tempat isolasi terpusat.

Dengan adanya kerjasama itu, selain mencegah penyebaran wabah pandemi, juga mendorong tetap bergeraknya roda ekonomi khususnya di sektor pariwisata. Sementara dalam skala yang jauh lebih besar lagi, Amman Mineral selama ini juga tercatat sebagai penyumbang Pendapatan Negara Bukan Pajak terbesar kedua di Indonesia

untuk tahun 2019.

IMA-Daily Update Page 18

Not Tired of Raising Again, Coal Touches a Little More at

US$62/ton Tirta Citradi, CNBC Indonesia

ALTHOUGH it was not as strong as in the

previous trade, yesterday the price of Newcastle thermal coal for an active contract was closed with appreciation.

Tuesday (6/10/2020), coal prices rose 0.24% to US$ 61.95/ton. Right on 1 October, coal prices touched their highest level in the last five months at US$ 62.3/ton.

After that, the price of coal dropped. However, it did not take long for the prices of these leading commodities from Indonesia and Australia to immediately rebound until now this week.

The tight supply of domestic Chinese coal has made the country's benchmark coal price significantly strengthened, even higher than the target price range set by the government.

At the end of last week, Qinhuangdao thermal coal prices for 5,500 Kcal/Kg rose 2.9% to RMB 612 / ton or the equivalent of US$ 90.13/ton. This price is considered expensive because it is above the 'green zone' in the range of RMB 500 - RMB 570 per ton.

The green zone is an informal target for Chinese authorities to maintain the sustainability of the coal miners' business and the margins of utility companies. With domestic coal prices already high, many are interested in buying imported coal because the price is cheaper.

Tak Bosan Naik Lagi, Batu Bara Sedikit Lagi Sentuh US$62/ton

Tirta Citradi, CNBC Indonesia

MESKI tak sekuat pada perdagangan yang sudah-sudah, kemarin harga batu bara termal Newcastle untuk kontrak yang aktif ditransaksikan ditutup dengan apresiasi.

Selasa (6/10/2020), harga batu bara naik 0,24% ke US$ 61,95/ton. Tepat pada 1 Oktober lalu, harga batu bara menyentuh level tertingginya dalam lima bulan ter-akhir di US$ 62,3/ton.

Setelah itu, harga batu bara melorot. Namun tak selang berapa lama harga komoditas unggulan Indonesia dan Australia ini langsung balik menguat sampai sekarang di pekan ini.

Ketatnya pasokan batu bara domestik China membuat harga batu bara patokan negara tersebut menguat signifikan bahkan lebih tinggi dari rentang harga target yang sudah dipatok oleh peme-rintah.

Harga batu bara termal Qinhuangdao untuk kalori 5.500 Kcal/Kg pada akhir pekan lalu menguat 2,9% ke RMB 612/ton atau setara dengan US$ 90,13/ton. Harga tersebut tergolong kemahalan karena sudah berada di atas 'green zone' di rentang RMB 500 - RMB 570 per ton.

Green zone merupakan target informal otoritas China untuk tetap menjaga keberlanjutan bisnis para penambang batu bara serta margin perusahaan utilitas. Dengan harga batu bara domestik yang sudah mahal, maka banyak yang tertarik untuk membeli batu bara impor karena harganya lebih murah.

IMA-Daily Update Page 19

This increase in interest also boosted the price of seaborne coal. Although China

began to strictly impose import quotas in the second and third quarters, with tight

supplies there is a possibility that some regions will begin to loosen them.

Moreover, entering the year-end period, the import quota policy will be renewed.

At the same time, ahead of the Christmas

holidays and the year-end new year Australian miners decided to stop their

operations. However, exports continue to run by utilizing the available stock, so that

even though production decreases, supply is still maintained.

Another factor that has the potential to

boost coal prices in the future is the La Nina phenomenon which causes wet

weather and can disrupt the supply chain for metallurgical coal (coke) which is

widely used for steel production. La Nina is also expected to have an impact on the

supply of thermal coal.

The threat of supply disruption

accompanied by improving demand, especially from China, has the potential to

cause coal prices to strengthen, especially at the end of this year and early next year.

CNBC INDONESIA RESEARCH TEAM (twg/twg)

Kenaikan minat ini juga turut mendongkrak harga batu bara lintas laut (seaborne). Meski

China mulai ketat menerapkan kuota impor pada kuartal kedua dan ketiga, tetapi dengan

ketatnya pasokan ada kemungkinan beberapa wilayah mulai melonggarkannya.

Apalagi memasuki periode akhir tahun kebijakan kuota impor akan diperbarui.

Pada saat yang sama, menjelang libur natal

dan tahun baru akhir tahun para penambang Australia memutuskan untuk menghentikan

aktivitas operasinya. Namun ekspor tetap berjalan dengan memanfaatkan stok yang

tersedia, sehingga meski produksinya turun pasokan masih tetap terjaga.

Faktor lain yang berpotensi mendongkrak

harga batu bara ke depan adalah fenomena La Nina yang menyebabkan cuaca yang

basah dan bisa mengganggu rantai pasok batu bara metalurgi (kokas) yang banyak

dimanfaatkan untuk produksi baja. La Nina juga diperkirakan bakal berdampak pada

pasokan batu bara termal.

Adanya ancaman disrupsi pasokan disertai

dengan membaiknya permintaan terutama dari China berpotensi menyebabkan harga

batu bara mengalami penguatan terutama di akhir tahun ini dan awal tahun depan. TIM

RISET CNBC INDONESIA (twg/twg)

Tesla in discussion for major investment in Indonesia, a key nickel producer: report

By Simon Alvarez

REPORTS have emerged suggesting that Indonesia’s government has entered early

discussions with American electric car maker Tesla about a possible major investment in the country, which happens to be a massive producer of nickel. The update was related by an Indonesian government official, who shared the information with news agency Reuters.

IMA-Daily Update Page 20

In a statement to the publication, Ayodhia Kalake, a senior official at Indonesia’s Coordinating Ministry for Maritime and Investment, noted that Tesla had reached out to the government about a possible venture. Kalake did not provide the specifics of Tesla’s communication, though he did mention that the electric car maker reached out to Indonesia informally.

“It was still an early discussion and was not detailed yet. We need further discussion with Tesla,” he said. Tesla, for its part, has remained quite silent about its reported contact with the Indonesian government.

While the details of Tesla’s reported efforts to potentially engage in a venture in Indonesia are still unknown at this point, a partnership with the country would likely benefit the electric car maker. Indonesia is considered as a giant in the nickel industry, after all, with the country boasting 25% of the world’s nickel resources.

Securing a venture in Indonesia could then be considered by Tesla as a way to strengthen its battery supply chain to a notable degree. Such efforts may very well be a strategic move from the electric car maker, seeing as Indonesia has stopped exports of unprocessed nickel ore to support investments in its domestic industries.

Indonesia has been quite busy on the nickel production front. Just last month, Indonesia stated that it had secured a deal to construct a lithium battery plant in the country with South Korean firm LG Chem and Chinese company China’s Contemporary Amperex Technology Ltd (CATL). Interestingly enough, both LG Chem and CATL are current battery partners for Tesla. Recent reports have even hinted that the American electric car maker is looking to acquire a 10% stake in LG Chem when it gets spun off into its own business, LG Energy Solution.

Tesla’s Battery Day has shown that the company is intent on developing a formidable battery production system. During its presentation, Tesla revealed that the company will be pursuing a diversified cathode approach for its wide range of electric vehicles and energy storage products. High-nickel batteries are intended to be used in the company’s most ambitious products, such as the Class 8 Tesla Semi and the futuristic Cybertruck. The material is also a key component for the company’s nickel-manganese batteries, which are expected to be used for long range electric vehicles like the Model Y and Model X.

Tesla’s focus on nickel was made evident during the second-quarter earnings call, when Elon Musk urged miners across the industry to supply as much nickel as they could. Musk noted that miners could expect “giant” contracts with Tesla provided that their nickel was produced in an efficient and environmentally-conscious manner. So far, several nickel miners have already answered Tesla’s call, including Canada’s Giga Metals and Brazil’s Vale SA.

Nickel supply to drop by 2025 – Macquarie By: Esmarie Iannucci, Creamer Media Senior Deputy Editor: Australasia

GLOBAL financial services provider Macquarie Group has called for investment into the

nickel sector, despite an anticipated oversupply in the near-term.

IMA-Daily Update Page 21

Speaking at the Paydirt Nickel conference, in Perth, Macquarie consultant Jim Lennon said that immediate investment in the nickel sector would be required to meet the potential "explosive" demand post 2025.

“Covid-19 has obviously had a negative impact on the supply/demand fundamentals for nickel, with the market shifting from a deficit to a surplus, and these conditions could last for a few years,” Lennon said.

The Covid-19 pandemic resulted in a sharp decline in primary nickel consumption, while the first quarter of the year also saw a decline in nickel production, which Lennon said was likely owing to Covid-related disruptions in Madagascar and the Philippines.

In the first seven months of 2020, a surplus of 90 000 t was recorded, with a surplus of 135 000 t was predicted for the full year, compared with a deficit of 35 000 t in 2019.

Lennon pointed out that world nickel use was expected to fall by 7.3% in 2020.

“The market is likely to get back into balance by 2024, and will move to a deficit by 2025,” Lennon told delegates.

He pointed out that in the medium-term, the pace of growth of the stainless steel market, and the pace of uptake of nickel in the lithium battery market would determine nickel demand.

Newcrest, Encounter JV begins drilling at gold-copper project Nickolas Zakharia

ENCOUNTER Resources has started diamond drilling at its Aileron gold-copper joint venture

project with Newcrest Mining in the West Arunta region of Western Australia.

The Newcrest-funded drilling program will target a magnetic anomaly in an area with no previous mineral exploration.

Encounter stated the anomaly had similar scale to a Carrapateena style iron oxide copper-gold system. No previous mineral exploration has been conducted on the project despite gold and copper anomalism being previous identified in the region.

The first drill hole will enter an unexplored belt that is prospective for large scale gold-copper deposits.

“Aileron is a large scale gold-copper opportunity in a new region. The target is interpreted to be a discrete, pipe-like, magnetic body located on a major regional structure,” Encounter managing director Will Robinson said.

“The magnetic anomaly is modelled to be under shallow cover and in an area of no previous mineral exploration. Success in this initial program would focus attention on the underexplored West Arunta.

“The joint venture controls a dominant land position in the district with tenure covering over 70 strike kilometres of the belt.”

IMA-Daily Update Page 22

The Aileron drilling is also co-funded by a Western Australian drilling grant of up to $150,000 under the Exploration Incentive Scheme.

Encounter is an ASX-listed exploration company that focusses on discovering gold deposits in

Western Australia.

US August coal exports total 4.1 million mt, down 41.3% on year:

Census Author: Olivia Kalb, Editor: Debiprasad Nayak

US thermal and metallurgical coal exports totaled about 4.1 million mt in August, down

15.6% from the previous month, US Census data released Oct. 6 said.

Monthly exports were at their lowest since September 2016.

From the year-ago month, exports declined 41.3%. Over the eight months, exports were 44.6 million st, down 31% year on year.

Out of August exports, 64.5% were met, leaving 35.5% thermal.

Of August thermal exports, bituminous shipments totaled 1.2 million st and subbituminous were 272,687 st. Bituminous exports were at their lowest in four months, while subbitumi-nous touched a four-month high, following zero exports in July.

Month-on-month bituminous shipments dropped 19.5%, and from the year-ago month

they declined 36.6%. Through August, bituminous exports totaled almost 12.9 million st, down 37.7% from the year-ago period.

Subbituminous shipments declined dropped 55.1% year on year. Through eight months, they totaled 2.6 million st, down 26.6% from the year-ago period.

The top importers for US bituminous coal in August were India, with 378,668 mt, up 32.3% from the year-ago month; the Netherlands, with 204,860 mt down 40.9% from last year; and the Dominican Republic, with 190,000 mt, compared with none in the year-ago month.

IMA-Daily Update Page 23

South Korea, Japan and Guatemala were the only importers of US subbituminous coal in August, taking in 167,674 mt, 91,604 mt and 13,409 mt, respectively. Year on year, South Korean imports declined 59%, Japanese imports rose 52.1%. Guatemala had no imports in the year-ago month.

Met exports

Met exports totaled over 2.6 million st in August, down 21.7% from July and down 42% year on year.

Through August, met shipments were 24.8 million st, down 27.5% year on year.

The top importers were Brazil, with 455,219 mt, down 7.6% from the year-ago month; the Netherlands, with 363,707 mt, down 14.7%; and Canada with 279,324 mt, down 15.8% year on year.

Tesla in talks with BHP over nickel supply pact Bloomberg News

TESLA Inc. is in talks with BHP Group on a nickel deal as the electric-car maker targets

higher production and seeks to avoid a supply crunch, according to people familiar with the matter.

Talks are held up on pricing, and no final agreement has been reached so far between the automaker and BHP, the world’s largest miner, said one of the people, requesting anonymity because the talks are private. The discussions come as Tesla works to raise the amount of the metal used in vehicle batteries to improve performance, and as it makes a push into in-house cell production.

IMA-Daily Update Page 24

Nickel is a key component for the cathodes of EV batteries, and Tesla Chief Executive Officer Elon Musk has expressed concern about supply due to challenges in sustainable sourcing. A deal with Tesla may come as a surprise to some BHP investors since nickel makes up a small part of BHP’s business. It would signal real progress in the company’s efforts to expand in the space and retool the nickel division to serve battery makers.

A spokesperson for BHP declined to comment. Tesla didn’t respond to an emailed request for comment.

Demand for nickel is forecast to surge in coming years as Tesla expands and companies from BMW AG to Volkswagen AG add to their lineups of electric models. Musk in July promised a “giant” contract to miners that produce the metal in an “environmentally sensitive way.” Nickel can help pack more energy into batteries, and allows producers to reduce use of cobalt, which is more expensive and typically has a less transparent supply chain.

Musk indicated last month his firm had been in contact with several nickel producers, without identifying the companies.

“We really need to make sure that we’re not constrained by total nickel availability — I actually spoke with the CEOs of the biggest mining companies in the world and said please make more nickel,” Musk told investors in a presentation last month.

The market for battery-grade nickel should be in a tight balance in the next two to three years as demand from lithium-ion battery producers picks up, BloombergNEF analyst Allan Ray Restauro said by email. There may be a significant deficit as early as 2023, when nickel prices

start to recover, he said.

“Nickel demand will grow significantly off the back of batteries and the EV thematic, and that will pull nickel prices up,” BHP CEO Mike Henry said in an interview last month.

BHP is focused on expanding its Nickel West unit after abandoning earlier plans to sell the assets and as it shifts away from traditional custo-mers in the stainless-

steel industry. The miner’s nickel division now sells more than 75% of output to the battery-supply chain in Japan, South Korea and China, up from less than 5% in 2016, the unit’s asset president Eduard Haegel said last year.

The producer agreed in June to buy an Australian project that holds one of the country’s biggest untapped reserves of nickel from MMC Norilsk Nickel PJSC, and is partnering with a smaller company on exploration in Quebec.

IMA-Daily Update Page 25

BHP has held extensive talks with companies in the battery sector, Henry said, declining to specify if those discus-sions included recent conversations with Tesla. “We’ve been pro-actively pursuing and talking to a lot of manu-facturers globally for a while now,” he said.

Tesla agreed to a deal in June to buy cobalt from Glencore Plc, and in recent weeks struck a

five-year raw-materials pact with Piedmont Lithium Ltd., developing a lithium project in North Carolina.

Brazil’s Vale SA, the top commercial nickel producer, has also talked with Tesla.

“As a world leader in the production and supply of responsibly-sourced nickel, Vale has engaged in talks with stakeholders at all points along the supply chain, including Tesla, to explore the possibility of partnerships,” the Rio de Janeiro-based company said in an emailed response. “This is consistent with Vale’s positioning in the market, the quality of our product and the increasing demand for nickel as a critical component of battery manufacturing for electric vehicles.”

(By Yvonne Yue Li and David Stringer, with assistance from James Attwood)

IEEFA U.S.: Renewables get an early start on beating coal generation Renewable generation has already topped coal on nine days this fall, compared with just

five days across the last half of 2019

THE MARKET window for coal-fired electricity in the U.S. is closing faster than ever in a shift

that is especially clear as autumn sets in.

From July through Oct. 5, renewables (utility-scale solar, wind and hydropower) generated more electricity than coal in the U.S. on nine days—easily topping the total of five days

recorded over the entire second half of 2019. Renewables have now generated more electricity than coal on 131 days in 2020—more than three times the 2019 results and with

some 80 days left in the year.

IMA-Daily Update Page 26

What’s more telling is the encroachment of renewable generation at both ends of the peak summer demand period. Last year, renewables didn’t top coal’s output until Oct. 19, well into the fall. This year, it happened on Sept. 19. Similarly, renewables only out-generated coal on three days in June 2019; this year, that happened 15 times, and as late as June 29.

THIS TRANSITION IS UNRELATED TO THE IMPACT OF THE CORONAVIRUS PANDEMIC. Rather, it can be traced directly to the steady buildout of solar and wind capacity being brought online nationwide, and to coal’s inability to compete economically with renewables. The U.S. now has 108 gigawatts (GW) of installed wind capacity, a 10% increase from a year ago, and more than 40GW of utility-scale solar, up 25% from last year.

All this new capacity has sharply increased renewable energy generation. From June through the end of August, total U.S. wind generation rose 21.7% while solar output climbed 22.5%. With overall generation remaining essentially unchanged during the summer—it fell 0.3% in 2020 from a year earlier—something had to give, and what gave was demand for coal-fired electric generation, which fell 7.6% this summer compared to 2019.

Coal’s decline can be seen also in the daily summertime power markets, too, a development that further calls into question plans by some plant operators to run their plants seasonally. This summer, coal accounted for more than 25% of daily demand on only two days, and then just barely (25.1%). In contrast, coal topped the 25% level 16 times during 2019. Similarly, coal fell below 20% of daily demand only once in 2019, while it happened 23 times this summer. In short, the need for coal-fired power at both the daily and seasonal levels is fading fast.

COAL IS CLEARLY BECOMING THE MARGINAL GENERATION RESOURCE IN THE U.S.—a trend that is likely to accelerate over the next several years, given the significant amounts of new wind and solar capacity expected online. The American Wind Energy Association reports a record 25.3GW of wind capacity under construction and an additional 18.1GW in advanced development; the Solar Energy Industries Association sees the solar industry installing 100GW of new capacity from 2021 through 2025, 83GW of which will be utility-scale.

Utilities and independent power producers are fully aware of these trends, and it is no coincidence that the past few weeks have seen big companies such as Vistra, Ameren and Duke Energy making major announcements around new plans, or accelerating previous plans, for the collective retirement of more than a dozen coal plants across the U.S.

The data shows coal power’s economic viability continuing to shrink, and IEEFA expects many more of these kinds of announcements to come.

Seth Feaster is an IEEFA data analyst.

Dennis Wamsted is an IEEFA energy analyst.