Indonesian Political, Business & Finance News

Minister Bahlil Officially Issues New Regulation on Coal Blending

| Source: CNBC Translated from Indonesian | Energy
Minister Bahlil Officially Issues New Regulation on Coal Blending
Image: CNBC

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has officially issued a new regulation, Ministerial Regulation Number 6 of 2026. This regulation amends Ministerial Regulation Number 17 of 2025, refining the procedures for preparing work plans, reporting mining business activities, and establishing standard rules regarding coal blending.

In its considerations, the regulation was issued to ensure the reliability of coal supply for domestic electricity and industrial needs, whilst simultaneously safeguarding product quality and state revenue.

The core of the amendment rests on three key points. The first, outlined in Article 19, mandates that holders of IUP Operation Production, IUPK Operation Production, or IUPK as Continuation of Contract/Agreement must compile and submit periodic reports every three months. These reports must include details on the implementation of coal blending activities for those who have obtained blending approval, as well as compliance with taxation, non-tax state revenue, and the realisation of resource development and utilisation activities.

The second point, under Article 33, clarifies administrative correction procedures. Should procedural errors or assessment mistakes be found during the approval or rejection of a Work Plan and Budget (RKAB), the Minister of ESDM or the authorised Governor has the right to make corrections without additional complicated procedures.

The third and most significant point establishes specific rules for coal blending through the addition of Articles 34A and 34B. Coal blending is now only permitted to meet certain quality specifications and must receive prior written approval from the Minister of ESDM. This applies to holders of IUP, IUPK, IUPK as continuation of contracts, and Coal Mining Work Agreement (PKP2B) holders whose RKAB has been approved. To apply for blending approval, operators must submit a request via the official information system with complete documentation, including the RKAB approval for the main coal and blending materials, copies of purchase and sale agreements, quality test results from a registered surveyor, and quality simulation data before and after blending. The reported quality data must include calorific value, sulphur content, moisture content, and ash content. Any approval granted is valid for the duration of the RKAB, and any rejection must be accompanied by clear reasons.

Furthermore, Article 34B stipulates that more detailed technical provisions regarding application guidelines, evaluation, and permit issuance will be regulated separately through a Ministerial Decree. Ministerial Regulation Number 6 of 2026 was signed by Minister of ESDM Bahlil Lahadalia on 8 June 2026 and takes effect from the date of its promulgation.

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