Regulation on coal export tax to be issued this week

The regulation on the government's plan to raise the current coal export tax is expected to be issued this week, according to a source at the ministry of energy and mineral resources.

"We hope the regulation on coal export tax can be issued this week," Director General of Coal and Geothermal at the Ministry of Energy and Mineral Resources Simon F. Sembiring was quoted as saying by Investor Daily on Monday.

Sembiring said that the regulation in coal export which would be jointly signed by Minister of Energy and Mineral Resources, Minister of Trade and Minister of Finance would among others determine the level of coal prices that would be used as the reference in collecting the export tax.

He said that the regulation on export tax was also based on proposals made by the association of coal producers (APBI). "So it is not true, of APBI opposes the coal export tax," he added.

Coordinating Minister of Economy Abrurizal Bakrie had said that the the government's plan to raise the current five percent tax on coal exports will be implemented only if the price of coal reaches above US$50 per ton.

Aburizal said that the decision to link the export tax with the coal price had been made in order to protect small and medium scale coal miners. (*)