Indonesia to tax coal exports higher, mulls over coal upgrading for domestic supply

Indonesia plans to boost income from the sector by increasing royalties for coal mining companies that hold Mining Business Permits. Under the proposed royalty rise, coal with a calorific content of between 5,100 kilocalories per kilogram (kcal/kg) and 6,100 kcal/kg will see a 9% royalty fee, up from 5% at present. Coal with more than 6,100 kcal/kg calorific content, will be charged with a 13.5% royalty fee, up from 7%.

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“If a developing country like Indonesia wants to reach higher electrification rate, which is now around 70%, we will need to continue looking at coal, but from a different and cleaner perspective,” he said.
There are two good ways in which Indonesia can achieve this, he added. “First is by upgrading the coal quality, which essentially means reducing the amount of water and impurities in the coal,” he said. “The second way is by increasing our focus on coal conversion technologies. Coal to liquid or coal to gas are options that will significantly reduce the amount of CO2 being released to the environment.”

source: http://www.oxfordbusinessgroup.com/news/telling-times-indonesia’s-coal-industry


I wonder for how long WEC will continue to explore so-called opportunities in Indonesia. These are doomed to end in another Tabang.