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A coal export tax to be implemented in Indonesia

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World Coal,

In a bid to increase state revenue and use more power generated in Indonesia, the country will impose a 1.5% tax on coal exports as of 8 August. This will be for firms with newer mining licences, known as IUPs.

"It only applies for IUPs and traders who export coal," Gultom Guska, Senior Coal Official with the Mines Ministry, told Reuters. He stated larger and older firms with Contracts of Work, such as Bumi Resources and Berau Coal Energy, will not be affected.

"This new regulation at the end is to increase state revenue. So far we haven't gotten any complaints from the coal association nor producers," said Bambang Gatot, the ministry's Director General of Coal.

Indonesia ships approximately US$2 billion of coal a month. The country is intending to keep more for domestic power demand and wants to increase revenue from the mining sector.

Edited from Source: Reuters by Harleigh Hobbs

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