Coal Royalty Rate for IUP Holders Depends on Quality and Price

Summary

The Energy and Mineral Resources (ESDM) Ministry is still formulating the coal royalty for Mining Business Permit (IUP) holders. The ministry's director of coal business development Lana Saria revealed that the discussion on the progressive non-tax state revenue (PNBP) had entered the final stage. "The rules are still being discussed at the inter-ministerial level and by related institutions," Lana said on Tuesday.

Lana did not reveal when the new rate would apply. However, it will depend on the coal quality and benchmark price (HBA). The decision to impose the progressive rate means that the government can earn more when coal prices are high. "However, if coal prices are low, the company can still survive," she argued.

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