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State-owned Enterprise Ministry Targets Mining Royalty at Rp1.4tn

Translator

Editor

23 January 2016 16:28 WIB

Open-pit mining. TEMPO/Parliza Hendrawan

TEMPO.CO, Jakarta - State-owned Enterprises (BUMN) Ministry has set a target that the royalty to the state from the mining sector could reach Rp1.4 trillion.  The figure increased from the previous year at Rp1.2 trillion.

Deputy to the State-owned Enterprises Minister for Mining, Strategic Industries and Media Affairs Fajar Harry Sampurno said that the prices of commodities have now dropped, including the price of global crude oil.

He also said that the drop in the price of global crude oil has also affected the price of coal.

“This month alone, the price global crude oil is at around US$ 29 per barrel,” Fajar said in Jakarta.

In addition, Fajar said that the prices of nickel and tin have also slumped.

Nevertheless, Fajar was upbeat that the prices of commodities would bounce because a number of power plants di Indonesia that uses coal as fuel would operate.

“Once they operate, the price of coal will increase,” he said, adding that the price of nickel will also increase accordingly.

Fajar also said that the price nickel dropped last year following the ban to export crude mining commodities.

“Smelters will operate so we can export nickel and the royalty will increase again,” he added.

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