Indonesia recognises two mechanism in coal processing. First is through the coal processing agreement or PKP2B (Perjanjian Karja Pengelolaan Batubara) and IUP permit. The license regime started when the government issued UU No 4/2009 on coal and mineral mining. Post issue of the regulation, all permits is obligated to follow the IUP pattern through renegotiation. To current date, not all PKP2N has renegotiated, resulting many operating PKP2B.
Second, IUP and PKP2B can not be detached from data, despite the fast pace of regulation changes in Indonesia. One of the changes is on UU Pemerintah Daerah No 32 year 2009 stated authorisation of the district/city government which then authorized province government after the issue of UU No 23 Year 2014.
Indonesia is a country committed to mitigating green house gas emissions based on the Paris Agreement. Indonesia has ratified the Paris Agreement through Undang-undang No 16 year 2016 on Ratification the Paris Agreement to The United Nation Framework Convention on Climate Change.
However, this commitment must be displayed by Indonesia through real actions. The government must renew and harmonise all policies and regulations siding with renewed energy, including implementing an incentive mechanism for renewal every and disincentive coal energy, also allocate funding and investment in renewal energy.
This page will contain studies on government policies in developing new and renewed energy, including fiscal policies in prompting the development.