Hendra Sinadia Deputy Executive Director Indonesian Coal Mining Association
The government should offer incentives

THE coal mining industry in Indonesia has not performed at its best these past few years. The price of coal has been plummeting for the past year, down to its lowest point at US$50.92 per ton in February 2016. It improved slightly last March to US$51.62, thanks to an increase in the global oil price.

Despite the improving performance of the coal industry, the government has significantly cut back its non-tax revenue (PNBP) target from minerals and coal, to Rp30.1 trillion from the initial target of Rp40.8 trillion. One of the reasons cited is the pending royalty payments due by a number of coal-producing companies.

June 14, 2016