Minister issues decree on 2016 mineral, coal revenue split
Monday, January 18 2016 - 04:11 AM WIB
Minister of Energy and Mineral Resources Sudirman Said has issued Ministerial Decree No 4620 K/80/MEM/2015 on producing regions and the basis for the calculation of mineral and coal revenue split for the year 2016.
According to a copy of the decree obtained by petromindo.com Monday, 251 regencies, 20 mayoralties, and 4 provinces are projected to receive so-called land-rent revenue.
Meanwhile, 119 regencies, seven mayoralties, and two provinces are planned to receive royalty.
The basis for the calculation of the 2016 revenue split from mineral and coal is as follows.
a. Estimated revenue from land-rend is calculated based on size of area times tariff (in accordance with stage of activity); and
b. Estimated revenue from royalty is calculated based on sales volume times tariff times selling price.
Regions entitled to land-rent revenue are those which have mining concessions that have produced revenue for the state, while those entitled to royalty are regions that have producing concessions that have realized sales and revenue for the state.
Editing by Reiner Simanjuntak