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Indonesia's To Charge Higher Coal Mining Royalties Under Revised Rules

Coal News - Published on Mon, 24 Jun 2019

Image Source: Mining Technology
Reuters, citing Bambang Gatot Ariyono, the ministry's Director General of Coal and Minerals, as saying that that Indonesia's Energy and Mineral Resources Ministry has proposed revising regulations governing mining rights to include higher royalty payments and earlier applications for permit extensions. Under the proposals, royalties on coal sales to central government would rise to 15% from 13.5%. The change in the royalty rate would be imposed when coal miners shift from so-called contracts of work to special mining permits which is required under the 2009 mining law.

Mr Ariyono said that the change in the mining rules would increase the government's share of coal mining revenue to 79% from around 68% currently. The holders of coal contracts of work can have permit extensions without going through a bidding process, if they agree on better state revenue.

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Posted By : Sanju Moirangthem on Mon, 24 Jun 2019
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