The Implementation Of Gold And Coal Customs Will Weight Business Actors

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is working on an exit duty rule, especially for coal and gold commodities whose rendana will be implemented in 2026.

Responding to this, the Chairman of the Development Agency (BK) of the Indonesian Engineers Association (PII) Rizal Kasli said the implementation of this policy would increase the cost burden for coal and gold mining business actors.

"This will have an impact on the company's profit and competitiveness with similar commodities from other countries," he said when contacted by VOI, Thursday, July 17.

Rizal explained that currently coal prices are being depressed due to oversupply and reduced consumption by major coal importers such as China and India.

On the other hand, he continued, the Government has also established several previous policies that have led to additional costs such as a 15 to 28 percent increase, especially for Special Mining Business Permits (IUPK) from the Coal Mining Concession Work Agreement (PKP2B) and 100 percent Export Revenue Funds (DHE) to 1 year.

"There will also be the implementation of the use of B40 and B50 fuels next year, of course this will increase the cost of post fuels for the Company," he continued.

He is worried that with market conditions that have not supported, this policy will be counterproductive.

He admitted, in the short term, this policy will boost state revenue in the form of (Non-Tax State Revenue (PNBP). But in the long term, it is feared that it will have a negative impact on declining mining industry conditions.

"And there is even potential suspension operation," he added.

For this reason, Rizal appealed that this policy be studied further by involving interest actors, including entrepreneurs, so that it can be discussed thoroughly.

If this policy continues, he said, it is feared that Indonesia's coal will be less competitive when compared to countries such as Russia, Australia, Colombia, USA, and South Africa.

"Indonesia is not the only producer of coal globally. Andil Indonesia is only about 3 percent of the world's coal reserves. From the production side, Indonesia is ranked 7th in the world," he said.