Draft Coal Value Added Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 373-381

CHAPTER 26

Draft Coal Value Added Regulation

I.Executive Summary

1. Overview

1.1 An advanced draft of the Coal Value Added Regulation (otherwise

known as the “Draft CVA Regulation”) has been circulated by way

of the intended eventual implementation of Article 96 of GR 23/2010.

1.2 At this time, it is not possible to say when the Draft CVA Regulation

will be finalized and issued.

2. Approach

2.1Determination of Processing Requirements: Processing require-

ments for coal are to be based on the following considerations:

a. Availability of coal resources and reserves in large quantities;

b. Existence of proven processing and refining technologies;

c. Need for the final product of processing and refining activities as

raw materials for domestic industry;

d. Suitability of coal resources and reserves as a source of domestic

energy;

e. Dual economic and social impact; and

f. Potential to increase state revenues.

2.2Carrying Out of Processing Requirements: Processing of coal, as

a mineral product, is to be carried out through the following activities:

a. Coal crushing;

b. Coal washing;

c. Coal blending;

d. Coal upgrading; and/or

e. Processing of low-ranked coal to become active carbon.

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