GLOBAL Indonesia raises coal royalty rate to range of 14% to 28% Indonesia raised its royalty rate for coal miners from a single tariff of 13.5% to a range of 14% to 28% dependent on government-set coal benchmark prices, a change miners said could impact future investment. The maximum royalty applies to general sales when prices breach $100 per tonne, Lana Saria, a director at the Energy and Mineral Resources Ministry said. Coal sold under the so-called domestic market obligation (DMO) to power plants and some
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other industries will be charged the 14% royalty, as those prices are capped at $70 and $90 per tonne. The new scheme was set as coal miners convert their licenses into a new special mining permits (IUPK) system when their contracts expire. The new royalty rate takes effect immediately for IUPK issued prior to 2022, while those issued this year will be charged the new rates in 2023. Under the new scheme, miners holding a special permit converted from older, so-called "first generation" contracts will be charged production royalties of 14% to 28% depending on the price brackets.
