Indonesia, one of the world’s largest thermal coal exporters, plans to increase royalties imposed on mining companies, which operate under IUP permits, to 13.5 percent of net sales in 2014 from the current rate of 5 to 7 percent, an official has said.
Energy and Mineral Resources Ministry director for the coal and minerals development program Paul Lubis, said in Bali on Tuesday that the government would increase the royalty rate in a bid to increase state revenue from the coal mining sector.
“We are planning to increase the royalties paid by coal miners holding the IUP licenses as we felt the current revenue from royalty payments was not as big as the coal the country has produced,†he said on the sidelines of the 19th CoalTrans Asia conference at the Bali International Convention Center in Nusa Dua, Bali.
IUP licenses issued by local governments after the introduction of the 2009 Mining Law were usually held by smaller or newer miners.
These smaller and newer mining companies paid their royalties based on the calorific value of the coal each of the firms produced  the higher quality of the coal would mean more royalties for the miners.
The royalty rate for coal with calorie contents of less than 5,100 kilocalories per kilogram (kCal/kg), for example, is set at 3 percent of net sales. A royalty rate of 5 percent of net sales is set for coal with a calorific value of between 5,100 kCal/kg and 6,100 kCal/kg while 7 percent is implemented for coal with a calorific value of more than 6,100 kCal/kg.
Source- Jakarta Post
Leave a Reply