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Govt looks to hike royalties for several mining products
The government is looking to hike royalties on several mining products by varying amounts based on the contract types and prices.
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Piles of coal are seen on barges on Aug. 16, 2022, in Samarinda, East Kalimantan. (AFP/Adek Berry)
T
he government is looking to hike royalties on several mining products by varying amounts based on the contract types and prices by revising Government Regulation No. 26/2022 on tariffs and types of nontax state revenue applicable to the Energy and Mineral Resources Ministry.
During an online public consultation on Saturday, the ministry's coal and mineral mining director general, Tri Winarno, said the initiative was an endeavor to “fix governance” around nontax revenue.
“We don’t mean to place a burden on anyone or the industry, and we are still hoping that the mining industry can sustain and participate more in the welfare and glory of the nation,” Tri said.
The new scheme will affect 12 mining products, as revealed in the Saturday online consultancy that was broadcast on YouTube.
The government planned to readjust coal levies based on three variables, namely the type of contract the miners hold, calorific values and the Indonesian Coal Benchmark Price (HBA).
For the mining operation permit (IUP) contract, the government wants to increase the royalty fee by 1 percentage point when the HBA is US$90 per tonne or more. Coal with a calorific value of less than or equal to 4,200 kilocalories per kilogram (kcal/kg), according to the proposal, would be subject to 9 percent royalty.
The proposed royalty for coal with a calorific value of 4,200 to 5,200 kcal/kg is 11.5 percent.
