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Government presses ahead with coal royalty hike plan

  • www.petromindo.com

The Ministry of Energy and Mineral Resources is pressing ahead with plans to increase the coal royalty tariff despite strong protest from miners, Bisnis Indonesia reported on Tuesday.

The paper quoted the ministry’s Director General of Mineral and Coal Bambang Gatot Ariyono as saying that his office has submitted to the Ministry of Finance’s Fiscal Policy Agency (BKF) a new (revised) coal royalty hike proposal. “We have submitted (the proposed royalty hike), but the decision depends on the (BKF),” he said.

The paper, however, said that under the revised version, the royalty tariff will be increased at a lower rate than in the initial version. Bambang declined to provide further details.

The government has been mulling to increase the coal royalty tariff of miners holding the IUP mining business license since last year in a bid to help increase revenue for the state. Under the initial plan, the current royalty tariff of low rank coal of 3 percent will be increased to 5 percent, the tariff of medium calorie coal to be increased from 5 to 9 percent, and the royalty tariff of high rank coal from 7 percent to 13.5 percent, equal to the royalty tariff of miners holding the coal contracts of work (PKP2B).

Miners, however, have strongly protested the royalty hike plan considering the current drop in the price of coal. Recent reports said that the government has canceled the plan to increase the tariff of low rank coal. 

Posted by : admin [ 7/10/2015 1:59:00 AM ]