Coal royalty should be paid before shipping

Wednesday, September 28 2016 - 03:08 AM WIB

By Adianto P. Simamora

Starting October 1, all coal shipment aimed for domestic market are required to pay royalty before shipping as part of the cash-strapped government?s effort to collect coal royalty.

The first implementation is slated to be held in Kalimantan, the country?s main coal producing island. The next step will be in Sumatra.

Receipt of the royalty payment should be enclosed to secure shipping permit to be issued by port operator.

In addition, coal shippers ? holders of Coal Contract of Work (PKP2B), Mining Business Permit (IUP) or traders ? should also secure the so-called verification report from independent surveyors appointed by the Directorate General of Mineral and Coal. The report will verify the origin of coal and analysis on coal quality and quantity.

?The government expects to fully implement the regulations on royalty payment and verification letter,? a source said.

The Directorate General of Mineral and Coal issued a circulation in 2013 on the payment of coal royalty that should be paid fully before the shipping.

In 2014, Directorate General of Mineral and Coal appointed six independent surveyors PT. Sucofindo, PT. Surveyor Indonesia, PT. Geoservices, PT. Carsurin, PT. Surveyor Carbon Consulting Indonesia (SCCI) and PT. Anindya Wiraputra Konsult.

Editing by Reiner Simanjuntak

Share this story

Tags:

Related News & Products