Indonesia plans to revise coal and gold mining royalties to increase government revenue

According to foreign news on January 15, an official said on Friday that Indonesia plans to adjust its mineral resources royalty policy for the sale of gold and coal to increase government revenue because the prices of these two commodities have recovered. Indonesia, the world's leading exporter of thermal coal, expects prices and exports to rebound this year after reaching a trade deal with China. Indonesia, also one of the largest gold producers, also benefited from the rise in gold prices last year. "in order to increase national revenue, we are adjusting royalties for gold and coal mines," Ridwan Djamaluddin, director of the Minerals and Coal Department of the Ministry, said at an online meeting. Ridwan added that Indonesia has almost revised the royalties of coal mines so that they are calculated on the basis of calorific value and market price, and only on the basis of calorific value at present. Currently, companies pay 2-7 per cent of coal sales to the central government and 3.75-5 per cent of gold sales. "as the price of gold rises, so will the government's revenue from this precious metal," Ridwan said. However, he did not disclose details such as when the policy adjustment will take effect.