Indonesia kicks off new year with coal levies

Indonesia aims to start implementing levies in January to help compensate coal miners selling to the state utility Perusahaan Listrik Negara (PLN) at reduced prices, reported Reuters. The plan follows a coal supply crunch at local power plants that forced the country to temporarily halt exports in early 2022.

“This will create fairness and a level playing field,” said Energy and Mineral Resources Minister Arifin Tasrif. “Everyone will share the responsibility to support the government program relating to domestic market obligations.”

Indonesia requires miners to sell a portion of their output to PLN at a maximum price of $70 per metric ton and to certain local industries at a maximum $90 per ton. Under the planned scheme, coal miners, excluding coking coal miners, will be required to pay levies and the proceeds will be used to compensate those who supply to PLN at the capped price.

The regulations and infrastructure needed for the implementation of the scheme are being finalised, Arifin said. “If all these can be finished soon, we can run a trial in December and the operation can start in January 1, 2024.”

State-controlled Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia will be appointed to collect the funds.

Source: Reuters

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