MINING ROYALTY: Govt to recommend increased coal mining royalty

Oleh Dyah Megasari – Rabu, 12 Juni 2013 | 16:46 WIB

JAKARTA. Energy and Mineral Resources Deputy Minister Susilo Siswoutomo promised to recommend an increased royalty rate on coal mining permits (IUP) to around 10-13 percent at the beginning of January 2014.

“Next year, the Energy and Mineral Resources Ministry will submit a recommendation on coal royalty increases to around 10-13 percent from currently between 3.5 and 7 percent. It is expected that the recommendation will be submitted in the 2014 state budget [APBN] in January 2014,” said Susilo on Tuesday, as quoted by Antara news agency.

He said it was not possible for the government both to submit the recommendation on coal royalty increases and apply coal export duties this year due to declining coal prices.

“Many companies closed their businesses; therefore, applying an increased royalty rate or export duties in such a situation would be deadly for the [coal] businesses. So we have not yet submitted the recommendation,” said Susilo.

Meanwhile, Finance Minister Chatib Basri said the government was ready to set the target if the Energy and Mineral Resources Ministry had issued the recommendation.

“We see that the IUP royalty, as well as the export duties, should be made on the principle of equality. We agree with that,” said Chatib.

“But based on the procedure, we have to wait because in terms of technical aspects in the field, it is within the domain of the Energy and Mineral Resources Ministry,” he said. (ebf/The Jakarta Post)

http://english.kontan.co.id/news/govt-to-recommend-increased-coal-mining-royalty

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