Investor Presentaiton
Regulatory Updates
adaro
Conversion of CCOW to IUPK
Continuation of Al's CCOW.
Government Regulation (PP No 15 of 2022) stipulates the changes in the commercial terms: royalty rate,
CIT rate, and additional profit sharing with the regional and central government.
1
Royalty rate
2
CIT
3
Non-tax state revenue (government's portion - from
net income)
CCOW
IUPK
13.5%
45%
14% -28%
22%
- Central Gov't
- Regional Gov't
4%
6%
In line with conversion to IUPK, Al's concession size has been reduced, but does not affect our operation
or our reserves.
Change in the royalty rate of IUP
This impacts MIP and Balangan Coal mines, representing approximately 17% of 2022 production. The
royalty going forward will be based on HBA pricing and could increase to between 7% -10.5% from 3% -
5%.
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