Coal export tax not rational: Minister

Gita Wirjawan: Indonesian Trade Minister. (JP/Wendra Ajistyatama)

Trade Minister Gita Wirjawan has criticized as irrational the idea to restrict coal exports by imposing an export tax.

"There has been a growing discourse regarding coal exports. Rationally speaking, we have signed a working contract with coal mining companies and by that, they have to pay 45 percent of royalties and taxes," Gita told reporters on Wednesday.

"Then there is a plan to tax coal exports coming out of nowhere. This could be regarded as a violation of the signed working contract," he added.

Gita said that it would be irrational to impose other kind of taxes on companies that had already paid royalties and taxes.

The idea of imposing an export tax on coal was recently raised by Energy and Mineral Resources Minister Jero Wacik.

Jero said that the policy was crucial to ensure domestic supply so the government could successfully carry out its programs on an energy mix, which was still highly dependent on fuel. (mtq)