Govt to Increase Coal Mining Royalty

TEMPO.CO, Nusa Dua – The Energy and Mineral Resources Ministry will continue with its plans to increase royalty demands for high and mid-calorie coal.

“The Finance Ministry said that the royalty demands for low-calorie coal would not be increased,” Energy and Mineral Resources Minister Sudirman Said told journalists after opening the 21st Annual Coaltrans Asia at the Bali International Convention Center on Monday, June 8, 2015.

However, Sudirman could not confirm yet as to the amount of the increase, saying it was still being discussed.

The government’s plans to increase coal mining royalty had sparked both pros and cons over the last few years. In 2013, the ministry halted the plans following declining coal prices.

The coal mining royalty will be actually imposed on miners under mining permits (IUPs) following an amendment to the Government Regulation No.9/2012 on tariffs and non-tax state revenues.

The amendment states that the royalty imposed on coal miners shall be increased from three percent to seven percent for coal with calorie content of less than 5,100 kilocalorie per kilogram (kCal/kg); and from five percent to nine percent for that with calorie content between 5,100 and 6,100 kCal/kg. In addition, the royalty demands for coal with calorie content above 6,100 kCal/kg shall be increased to 13.5 percent.

AYU PRIMA SANDI