The Government Ensures That The Increase In Minerba Royalties Will Not Disrupt The Investment Climate

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung. (Photo: Maria Trisnawati/VOI)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) is known to increase royalties for mineral and coal commodities this year.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the increase in royalties would not affect the investment climate.

"No, it shouldn't," Yuliot told the media crew at his office, Friday, March 14.

Yuliot explained that currently the Ministry of Energy and Mineral Resources is finalizing the rules in the form of Government Regulations (PP) and has been in meeting with the Ministry of State Secretary and Ministry of Finance.

"We are also in the royalty adjustment earlier, this sees how for the economy for business actors, there should not be a charge because competitiveness and business sustainability are considerations," continued Yuliot.

Furthermore, Yuliot explained, the application of this royalties increase could not be separated from the increase in coal commodity prices, which had reached 300 US dollars per ton, but currently the price of coal, which is above 6,000, has decreased.

With the decline, he said, production costs continued to increase

"Meanwhile, on the other hand, prices have decreased. So we see a balance between production costs and how state revenues are," added Yuliot.

Yuliot emphasized that the government wants to issue the same policy in favor of business actors and the government.

"On the other hand, the state still gets income from activities carried out in the context of implementing PKP2B activities in particular," he explained.

Just so you know, initially coal commodities were subject to progressive adjusting the Reference Coal Price (HBA) but the government proposed an increase for HBA of more than 90 US dollars to a maximum rate of 13.5 percent.

Meanwhile, nickel ore commodities from 10 percent to 14 percent to 19 percent adjusted the Reference Mineral Price (HMA).

Nickel Matte from 2 percent to 4.5 percent to 6.5 percent according to HMA.

Meanwhile, Ferro Nickel from 2 percent to 5 percent to -7 percent adjusts to HMA.

Nickel Pig Iron from 5 percent to 5 to 7 percent adjusts to HMA.

The copper ore commodity from 5 percent to 10 to 17 percent adjusts to HMA.

The Tembaga concentrate from 4 percent to 7 to 10 percent adjusts to HMA.

Katoda copper from 2 percent to 4 to 7 percent adjusts to HMA.

The Golden Commodity from 3.75 to 10 percent became 7 to 16 percent according to HMA.

Silver from 3.25 percent to 5 percent. Platina from 2 percent to 3.75 percent.

Tin metals from the original 3 percent to 3 percent to 10 percent adjust the selling price.