Politics
Jokowi asks Minister Luhut, Sri Mulyani to review coal royalty rates for IUPK holders
TEMPO.CO, Jakarta – President Joko Widodo or Jokowi The government has ordered Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan and Finance Minister Sri Mulyani to review coal royalty rates. The tax will apply to holders of Special Mining Licenses (IUPKs).
Acting Director General of Minerals and Coal Bambang Suswantono, representing Minister of Energy and Mineral Resources Arifin Tasrif, conveyed this after an internal meeting with Jokowi at the Presidential Palace in Jakarta on Tuesday, July 2, 2024. The IUPK for coal and coal reference prices will be discussed in more detail next week.
Bambang said no consensus was reached at the meeting. However, the government will continue to revise the coal benchmark price, or HBA, as it serves as a reference for coal royalty rates.
“The review is not yet complete and will be continued by the Coordinating Minister for Maritime Affairs and Investment and the Minister of Finance,” Bambang said after the meeting. “The reference price of coal (is being revised) because coal has a huge calorific value,” he added.
Bambang was reluctant to provide further information on changes to non-tax government revenue (NTGR) compared to the benchmark coal prices. Minister Sri Mulyani also declined to comment at a separate meeting.
The regulation of coal royalty rates is contained in Government Regulation No. 26 of 2022 concerning the Types and Rates of Non-Tax Government Revenue Applicable to the Ministry of Energy and Mineral Resources.
1. Calorific value of 4,200 Kcal/kg and less
HBA below USD 70: 5 percent
HBA 70-90 USD: 6 percent
HBA $90 US and above: 8%
2. Calorific value of 4,200 to 5,200 Kcal/kg
HBA below USD 70: 7 percent
HBA 70-90 USD: 8.5%
HBA $90 US and above: 10.5%
3. Calorific value of 5,200 Kcal/kg and more
HBA below $70: 9.5%
HBA 70-90 USD: 11.5%
HBA $90 US and above: 13.5%
DANIEL A. FAJRI
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