JAKARTA, Aug. 26 (Xinhua) — The Indonesian government has clarified that coal can be sold below the coal benchmark price (HPB), but tax and royalty payments must still be calculated based on the benchmark price, said Gita Mahyarani, executive director of the Indonesian Coal Mining Association, on Tuesday.
The Ministry of Energy and Mineral Resources issued a decree this month that revises earlier rules and confirms that holders of mining business permits, special mining business permits, contracts of work, and coal mining business work agreements may conduct sales below the HPB as long as taxes and royalties are paid according to the benchmark price, according to local media.
“This regulation confirms that sales below the benchmark price are permitted. At the same time, royalty and tax payments remain based on the HPB. Mining firms have always been required to follow this mechanism,” Gita said.
In 2024, Indonesia achieved a record high coal production of 836 million tons, exceeding the previous year’s output of 775 million tons. ■