TEMPO.CO, Jakarta - President Joko Widodo or Jokowi ordered the Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan, and the Minister of Finance Sri Mulyani to review coal royalty rates. The levy will apply to Special Mining Business License (IUPK) holders.

Acting Director General of Mineral and Coal Bambang Suswantono, representing the Minister of Energy and Mineral Resources Arifin Tasrif, conveyed this after an internal meeting with Jokowi at the Presidential Palace in Jakarta on Tuesday, July 2, 2024. IUPK for coal and coal reference prices will be discussed further next week.

Bambang said no consensus was reached at the meeting. However, the government will continue reviewing the coal reference price, or HBA, as it’s the benchmark for the coal royalty rates.

"The review is not yet finished and will be continued by the Coordinating Minister for Maritime and Investment Affairs and the Minister of Finance," said Bambang after the meeting. "The coal reference price (is reviewed) since coal has huge calorific value,"

Bambang was reluctant to provide further statements on changes to non-tax state revenues (PNBP) against the coal reference prices. Minister Sri Mulyani also refused to comment when met on a separate occasion.

The regulation of coal royalty rates is contained in Government Regulation No. 26 of 2022 concerning Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Energy and Mineral Resources.

1. Calorific value of 4,200 Kcal/kg and below

HBA below US$70: 5 percent

HBA US$70 - 90: 6 percent

HBA US$90 and above: 8 percent

2. Calorific value of 4,200-5,200 Kcal/kg

HBA below US$70: 7 percent

HBA US$70 - 90: 8.5 percent

HBA US$90 and above: 10.5 percent

3. Calorific value of 5,200 Kcal/kg and above

HBA under US$70: 9.5 percent

HBA US$70 - 90: 11.5 percent

HBA US$90 and above: 13.5 percent

DANIEL A. FAJRI

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