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Govt to start collecting coal levies through state-owned lenders in 2024
The Energy and Mineral Resources Ministry wants managing agency partners (MIPs) to start collecting coal levies in January in a bid to improve coal producers’ compliance with the industry's domestic market obligation (DMO).
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Workers walk near coal barges at a port in Palembang, South Sumatra, on Jan. 4, 2022. (Reuters)
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he Energy and Mineral Resources Ministry wants managing agency partners (MIPs) to start collecting coal levies in January 2024 in a bid to improve coal producers’ compliance with the industry's domestic market obligation (DMO).
State-owned lenders Bank Mandiri, BNI and BRI will be appointed MIPs, according to Energy Minister Arifin Tasrif.
“The draft of the presidential regulation is in the final stage,” he told House of Representatives Commission VII overseeing energy and mineral resources policies in Jakarta on Tuesday, adding that the government was preparing supporting regulations to implement the scheme.
This includes a Finance Ministry regulation (PMK) on coal compensation fund (DKB) contributions, a revision of Energy Ministry Decree No. 58/2022 on the US$90-per-tonne coal price for the domestic cement and fertilizer industries, as well as a regulation on technical instructions for DKB collection and distribution procedures, according to energy ministry material presented to the House on Tuesday.
“The energy ministry decree will need to be synchronized with the upcoming presidential regulation,” Arifin said.
Last year, the energy ministry passed Energy Ministry Decree No. 58/2022 to expand the US$90 coal price cap from the cement and fertilizer industries to all domestic industries, with the exception of metal mineral processing facilities and refining industries.
Read also: Govt to cap coal prices for domestic cement, fertilizer industries
