Updated Client Newsletter – New Policies on Domestic Market Obligation for Coal
Just 3 days after the issuance of MEMR’s Decree 1395/2018 on Coal Sale Price for Power Industry, MEMR issued Decree 1410 which was announced today during MEMR’s coffee morning session, addressing one of the most crucial issues in MEMR Decree 1395, the retroactive application of DMO coal sales price for power industry as of 1 January 2018. Under this new decree, the mandated price formula will only be effective since 9 March 2018. As we have pointed out in our newsletter yesterday, the retroactive provision of MEMR Decree 1395 might create unnecessary complexities for coal sale transactions that have been completed prior to the issuance of such decree, which can further raise some legal challenges to its implementation. The government’s swift action is much appreciated and shows its adaptability to changing circumstances in Indonesia.
Our updated client newsletter can be accessed here.