Jakarta Post reported that Indonesia expects to increase coal production by up to 20 million tonnes in 2010 as lawmakers insist that the government must book higher non tax revenue from the mining sector in 2010.

Mr Bambang Setiawan director general for coal, minerals, and geothermal at the Energy and Mineral Resources Ministry said that the House of Representatives' budget committee had asked the government to set a non tax revenue target of IDR 15 trillion from the mining sector in 2010.

He added that "The government had earlier proposed the revenue at IDR 14 trillion, which is unchanged from this year's target. But, as the House's budget committee wants the revenue to be IDR 15 trillion, we expect that next year we can slightly increase the production."

Coal and other mining commodities contribute to non tax state revenue mainly through royalty payments. Coal contributes the biggest single contribution to state revenues from mining commodities. The royalty payments will then be shared between the central and regional governments involved.

(Sourced from www.thejakartapost.com)