Government plans mineral, coal royalty hike

The government plans to increase the mineral and coal royalty tariff this year in a bid to help meet higher state revenue from the mining sector and compensate for a decline in oil and gas revenue.

This was said by Minister of Finance Bambang Brodjonegoro on Monday, but did not provide further details.

To facilitate the planned mining royalty hike, the government will revise Government Regulation No 9/2012, which among others stipulates the royalty tariffs of 68 kinds of mining products.

Director General of Mineral and Coal R. Sukhyar previously said that the royalty tariffs of coal would be increased to between 7-13.5 percent. The royalty tariff of coal with calorific value of less than 5,100 kcal/kg, for instance, will be increased from 3 percent to 7 percent. The tariff of coal with CV of between 5,100-6,100 kcal/kg will be raised from 5 percent to 9 percent, and the tariff of coal with CV higher than 6,100 kcal/kg will be increased from 7 to 13.5 percent. (*)