JAKARTA (Yosefardi) – The government of Indonesia has canceled its plan to harmonize coal royalty, to 13.5% for all calories, imposed to producers operating under IUP (mining business permit).

The government opted to cancel the plan due to mounting rejection by the coal miners as coal price is on the falling.

However the government warns that the royalty hike is needed when the coal prices recovered.

Coal stocks were mixed this morning. Bumi Resources Minerals gained 1.27%, Bumi Resources rose 0.32%, and Berau Coal Energy increased 1.69%. While Adaro Energy fell 0.5%.