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ICMA recommends increase in royalty if coal price hits $100

The Indonesia Coal Mining Association (ICMA) has suggested the government not increase royalty on coal if the price of the commodity is still below US$100 per ton.

Association Chairman Bob Kamandanu warned that based on the ICMAs studies, many coal miners would collapse if royalty is raised at the time coal is still below such price level.

"We dont recommend royalty increase if the price is below US$100. If the government insists to go ahead with royalty hike plan, our studies indicate about 46 percent of coal miners will be closed," he said on the sidelines of the seminar on coal royalty and export tax held by the association in Jakarta on Wednesday.

The government has signaled that it would raise royalty on coal next year as stipulated in the mining law

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