Coal royalty hike may be delayed: Report

The government?s plan to increase the coal royalty tariff to a maximum of 13 percent starting January of 2014 may be delayed as the necessary legal umbrella for the policy has yet to be completed, Kontan daily reported Monday.

The paper said that the government is currently still in the process of revising the Government Regulation No 19/2012 which would become the legal basis for the policy. ?To my knowledge, it is still being discussed at the Office of the Coordinating Minister for the Economy,? Edi Prasodjo, Coal Business Development Director at the Ministry of Energy and Mineral Resources, told Kontan.

The government, particularly the Ministry of Finance, has planned to increase the coal royalty tariff of the so-called IUP mining business permit holders to a maximum of 13 percent depending on coal calorific value from the current 3.7-7 percent. The policy has been protested by many miners considering the current downturn in the global coal market.

Edi said that as the policy is inter-sector, the revision of the Government Regulation No 19 has to be made uder the coordination of the Office of the Coordinating Minister for the Economy. ?I don?t know if it has been completed or not. But the revision will be quick,? he said.

If this can be realized, the planned royalty hike could be implemented on January 1 of next year as scheduled. (*)