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Kartini Laras Makmur, Andin Aditya Rahman
The Government’s plan to increase the coal royalty for Mining Business Permit holders has been officially put on hold after an objection was raised by the Indonesian Coal Mining Association (APBI). The APBI argues that the coal mining sector is currently not in a position to be able to cope with such an increase due to the continued collapse in the price of coal in the global market.
The postponement of the tariff increase by amending Government Regulation No. 9 of 2012 on Types and Tariffs of Non-tax State Revenue (PNBP Regulation) was officially announced by the Ministry of Energy and Mineral Resources last Thursday.
“Not cancelled, but delayed,” declared Sukhyar, Director General of Mineral and Coal.
He explained that the delay could very well affect the final level of tariffs for coal mining royalties. The Ministry of Energy and Mineral Resources is currently reconsidering the percentage increase.
“We will consider the suggestions from the APBI. We will review it. It could mean that the increase will not be that high,” admitted Sukhyar.
As background, the Government had intended to raise coal royalty tariffs for Mining Business Permit holders to match those that must be paid by parties to a Coal Mining Business Working Agreement (PKP2B).
Under the current PNBP Regulation, the tariff for parties to a PKP2B is 13.5 percent of sales price, and the tariff for Mining Business Permit holders ranges between 3 to 7 percent.
Supriatna Suhala, Executive Director of the APBI, applauded the Government’s decision to delay the implementation of and review the intended tariff increase based on his organization’s input.
“They have yet to make a decision on the royalty, it is still in the pipeline. It looks like it must wait but we have submitted our suggestions,” he explained.
Mr. Suhala emphasized that a royalty increase cannot be implemented at the present time without causing serious consequences for the coal mining industry. An increase in the royalty that must be paid by coal corporations would add to company costs amidst the already unfriendly business climate for the coal sector.
(hot/kc)
Kartini Laras Makmur, Andin Aditya Rahman
The Government’s plan to increase the coal royalty for Mining Business Permit holders has been officially put on hold after an objection was raised by the Indonesian Coal Mining Association (APBI). The APBI argues that the coal mining sector is currently not in a position to be able to cope with such an increase due to the continued collapse in the price of coal in the global market.
The postponement of the tariff increase by amending Government Regulation No. 9 of 2012 on Types and Tariffs of Non-tax State Revenue (PNBP Regulation) was officially announced by the Ministry of Energy and Mineral Resources last Thursday.
“Not cancelled, but delayed,” declared Sukhyar, Director General of Mineral and Coal.
He explained that the delay could very well affect the final level of tariffs for coal mining royalties. The Ministry of Energy and Mineral Resources is currently reconsidering the percentage increase.
“We will consider the suggestions from the APBI. We will review it. It could mean that the increase will not be that high,” admitted Sukhyar.
As background, the Government had intended to raise coal royalty tariffs for Mining Business Permit holders to match those that must be paid by parties to a Coal Mining Business Working Agreement (PKP2B).
Under the current PNBP Regulation, the tariff for parties to a PKP2B is 13.5 percent of sales price, and the tariff for Mining Business Permit holders ranges between 3 to 7 percent.
Supriatna Suhala, Executive Director of the APBI, applauded the Government’s decision to delay the implementation of and review the intended tariff increase based on his organization’s input.
“They have yet to make a decision on the royalty, it is still in the pipeline. It looks like it must wait but we have submitted our suggestions,” he explained.
Mr. Suhala emphasized that a royalty increase cannot be implemented at the present time without causing serious consequences for the coal mining industry. An increase in the royalty that must be paid by coal corporations would add to company costs amidst the already unfriendly business climate for the coal sector.
(hot/kc)