[Legal Alert] Keputusan Menteri Energi dan Sumber Daya Mineral Republik Indonesia No. 91 K/12/MEM/2020 tentang Harga Gas Bumi di Pembangkit Tenaga Listrik (Plant Gate) / Ministry of Energy and Natural Resources Decree no. 91 K/12/MEM/2020 on Power Plant (Plant Gate) Gas Price

On 22 April 2020, the Indonesian Minister of Energy and Mineral Resources (“ESDM”) of issued Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia No. 91 K / 12 / MEM / 2020 concerning the Natural Gas Price in the Power Plant (Plant Gate) Indonesia.

which principally contains:

• Determine the Natural Gas Price in the Power Plant (Plant Gate) listed in the Appendix which is an integral part of this Ministerial Decree.
• Natural Gas Price in the Power Plant (Plant Gate) as referred to in the FIRST point is the calculation of adjustments to the component price of Natural Gas from Upstream Oil and Gas Business Activities and distribution costs consisting of transportation costs and midstream Gas costs.
• Natural Gas Price in the Power Plant (Plant Gate) as referred to in the FIRST point is outlined in
  • agreement on the sale and purchase of Natural Gas for power plants between Natural Gas providers and PT PLN (Persero) and / or Electricity Generation Business Entity; and / or
  • agreement on the distribution of Natural Gas between a Business Entity Holder of a Natural Gas Commercial Business License with PT PLN (Persero) and / or an Electric Power Generation Business Entity.

• The Special Task Force for Upstream Oil and Gas Business Activities or the Aceh Oil and Gas Management Agency in accordance with its authority coordinates the adjustment of Natural Gas prices from Upstream Oil and Gas Business Activities as referred to in the SECOND point to the Cooperation Contract Contractor (PSC Contractor).
• Completion of the Natural Gas Sales and Purchase Agreement and / or other administrative documents related to the adjustment of the price of Natural Gas from the Upstream Oil and Gas Business Activities as referred to in the SECOND point, shall be completed no later than 1 (one) month after this Ministerial Decree comes into force.
• The Downstream Oil and Gas Regulatory Agency coordinates and determines the adjustment of the amount of transportation costs in the form of tariffs for transporting natural gas through pipes in the context of setting the price of natural gas at the [Plant Gate] as referred to in the FIRST Point.
• Settlement of Decisions, Natural Gas Transport Agreements, and / or other administrative documents related to the tariff for transportation of natural gas through pipelines must be completed no later than 1 (one) month after this Ministerial Decree takes effect.
• The Minister through the Director General of Oil and Gas conducts an evaluation and can conduct a review of the determination of the Price of Natural Gas in the Power Plant (Plant Gate) as referred to in the FIRST point.
• PT PLN (Persero) and / or Electricity Generation Business Entity reports on the use of the volume and Natural Gas Price in the Power Plant (Plant Gate) as referred to in the FIRST point , periodically every 6 (six) months to the Minister through the Director General of Oil and Natural Gas with a copy to the Director General of Electricity.