Govt expects extra Rp 3t next year from higher coal royalty

By Cepi Setiadi

The government expects to earn an extra Rp 3 trillion of revenue next year if the planned increase in royalty of coal produced by coal mining companies operating under the IUP mining permits to 10 percent is realized.

This was said by Vice Minister of Energy and Mineral Resources Susilo Siswoutomo on Wednesday after speaking at a seminar on the subject.

Susilo said that the government is still evaluating the policy as more inputs are expected from the miners including the Indonesia Coal Mining Association.

Miners have protested the planned increase in the royalty amid the current downturn in the global coal market.

The coal royalty of the IUP mining permit holders is currently set at a range of 3 percent and 7 percent depending on the calorific value of the coal. In comparison, the royalty paid by coal companies under the so-called PKP2B is set at 10 percent of net sales.

Editing by Reiner Simanjuntak