JAKARTA (Yosefardi) – The Association of Municipality Governments of Indonesia (Apkasi) demands the central government to increase coal royalty to 25% from current 3-7% imposed to holders of mining business permit (IUP-earlier called KP).
The government of Indonesia had previously proposed to increase coal royalty to 13% imposed to IUP holders, to be implemented by early 2014.
While coal royalty of holders of coal contract of work (PKP2B) is set at 13.5%. In addition PKP2B holders are also now imposed tax of up to 45%.
As currently coal price is on declining trend, higher tax and royalty imposed might turn companies engaged on coal business into bankrupt.