Updated BMN PKP2B Framework Introduced: Contractors and IUPK Holders May Now Resolve Asset Losses Through Replacement at Their Appraised Values

In 2021, the Minister of Finance (“ Minister ”) issued Regulation No. 225/PMK.06/2021 (“ Regulation 225/2021 ”) on the Management of State-Owned Assets (Barang Milik Negara– “ BMN ”) Originating from Coal Mining Cooperation/Work Agreements (Perjanjian Kerja Sama Karya Pengusahaan Pertambangan Batubara– “ PKP2B ”). Regulation 225/2021 established a detailed set of procedures for the management of BMN PKP2B, including administration, utilization, transfers of status, disposal, destruction and removal. Regulation 225/2021 also outlined the roles and responsibilities of various government entities, including the Minister and the Minister of Energy and Mineral Resources, along with contractors and holders of Special Mining Business Permits (Izin Usaha Pertambangan Khusus– “ IUPK ”) as a Continuation of Operations (“ IUPK Holders ”), as regards their involvement in coal mining operations.