Indonesia Government reviewing to raise royalties and export duties of coal commodity companies

The Indonesia Government reviewing to raise royalties and export duties of coal commodity companies. The goal is to increase state revenues in the volatile situation.

Special Staff of ESDM Minister, Mr Thabrani Alwi said the government reviewing to raise coal royalties and export duties for Coal to 10% to 13.5%.

"Currently, the government plans to increase coal royalties are devoted to IUP (Mining Permit) from 5% until 7,5% to 10% until 13.5%," said Thabrani at the Ministry of Energy and Mineral Resources, Wednesday (11/9/ 2013).

As for the coal mining company, the Coal Mining Employers Work Agreement (Perjanjian Karya Pengusaha Pertambangan Batubara / PKP2B), the royalty it is not altered or it is a fixed royalty of 13.5%. "For PKP2B, the royalty is fixed," he said.

Based on Government Regulation No. 9 of 2012 concerning Types and Tariffs on Non-Tax State Revenues, royalties for open pit coal pegged between 3% -7% of the sales price depending on the type of calories.

As for coal from underground mines the amount of the royalty is 2% for calories less than 5,100 calories per Kg.

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