ICMA proposes higher tax rather than export banning for low-rank

By Hiski Darmayana

Indonesian Coal Mining Association (ICMA) said that the government should impose a higher-tax policy rather than banning the export of low-rank coal.

"The government should not ban the export (of low-rank coal). It is better to impose a higher tax on export as implemented in China," Supriatna Suhala, ICMA's Executive Director, said.

The government has said Indonesia would ban the export of low-rank coal starting in 2014.

The government however has not determined the threshold of calorific value of coal to be categorized as low-rank.

Editing by Adianto P. Simamora