The Minister for Energy and Mineral Resources has recently overhauled the system of compensation and fines for companies carrying out coal mining. The new system provides compensation for companies who are not able to sell one quarter of the coal they have produced in fulfilment of their regulatory requirement to produce a certain amount for Indonesian domestic consumption. The new compensation scheme is calculated on a formula that takes into account sales, price and production. Similarly, for those that fail to produce the legislated amounts of coal for Indonesian domestic consumption instead of the previous administrative sanctions, a fine will be imposed, calculated on the sales, prices and the volume production has fallen short. Compensation and fine payment will be carried out online.