Member Of Commission VII Concerning Zero Royalty Percent Downstream Of Coal In The Job Creation Perppu: Added Rumyam And Increasingly Unfair

JAKARTA - Member of Commission VII DPR RI Mulyanto assessed that the government's decision to provide zero percent royalties for coal downstream as stated in the Government Regulation in Lieu of the Law (Perppu) on Job Creation was unfair.

Based on previous experience, he said, the government should impose a progressive royalty rate for coal exports in order to create justice between entrepreneurs, local governments, and communities living around the mining area.

Amid the high price of coal, which has skyrocketed the wealth of coal tycoons, the Government instead of raising coal export royalties instead of issuing a Ciptaker Perpu which will apply royalties zero percent for coal downstreaming. This Perppu has even added to runyam and is increasingly unfair," said Mulyanto in his statement to the media, Wednesday, January 4.

Mulyanto also asked the government to review the article on zero percent royalties and immediately apply progressive royalties, where the amount of royalties will increase progressively if world coal prices are high.

Unlike today, where coal royalties are flat at 13.5 percent if the benchmark coal price (HBA) is 90 US dollars per ton and above.

The percentage of the royalty rate should be higher following the increase in coal prices. For example, royalties of 15 percent if HBA is above 150 US dollars per ton; then it increases when the price is above 300 US dollars per ton; as well as when coal prices reach USD400 per ton. Not flat by 13.5 percent," Mulyanto said.

According to him, the zero percent downstream coal royalty policy will only increase the income inequality between entrepreneurs, the central government and local governments.

Mulyanto assessed that, with the current provisions, many coal-producing regional heads have complained about the amount of profit-sharing funds (DBH). Moreover, the government and the Ciptaker Perpu plan to eliminate coal downstream royalties, the regions will be even more screaming and inequality will widen.

"With conditions like now, coal entrepreneurs are already rich, especially if zero percent royalties are applied. They will party more and more enjoying the existing free SDA. Even though the constitution mandates that this SDA of God's gift be used as much as possible for the prosperity of the people," he concluded.