INDONESIAN MINING Govt Cancels Export Duty Imposition On Coal

JAKARTA February 9 2015–Government canceled the imposition of coal export duty and decided to replace it with other alternatives to boost non-tax revenue.

The increase of coal price in global market in the past week did prevent the government from canceling the export duty implementation.

The reason is because there is a scheme to boost coal production in order to increase non-tax payment from mineral and coal sector.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources R. Sukhyar said the imposition of export duty for coal is now being reviewed.

However the proposal from the Fiscal Policy Agency is still waiting for a decision letter from the Energy and Mineral Resources Ministry.

“It is not the right time to impose the policy. Ministry of Energy and Mineral Resources will express it to the Ministry of Finance” he said Friday (2/6).

According to him this decision is taken due to low price of coal whereas the Ministry of Energy and Mineral Resources will impose adjustment on royalty increase so that the policy would burden business players.

The ministry sets price reference for coal (HBA) in January 2015 at US$63.84 per ton or 1.25% lower than US$64.65 per ton in the previous month.

The price of coal with a calorie content of 3000 kilocalories per kilogram (kcal/kg) is set around US$15.78-US$16.72 per ton in accordance with Coal Benchmark Price (HBP) issued by the Directorate General of Mineral and Coal in January 2015.  Read more...