Admits The Increase In Coal Royalties Will Reduce Profits, Bukit Asam Boss Prepares Anticipatory Steps

Bukit Asam Management. (Photo: VOI/Mary Handayani)

JAKARTA - PTBA President Director Arsal Ismail admits that the increase in coal royalty fees in the future will erode the company's profit. Even so, he said that the government's decision to increase coal royalties had already been considered from various aspects.

As is known, President Joko Widodo (Jokowi) has approved the stipulation of an increase in the coal royalty rate for companies holding mining business permits (IUP) to 13.5 percent from the previous year's 7 percent.

The rules are contained in Government Regulation (PP) Number 26 of 2022 concerning Types and Tariffs of Non-Tax State Revenues that apply to the Ministry of Energy and Mineral Resources.

"With the application of royalties, of course, it will slightly erode the company's profit if there is no increase in sales. Because this will increase the HPP, because this is a cost. But the costs incurred are certainly balanced with the current market conditions," he said in a presentation on the company's performance. first semester of 2022, at the Raffles Hotel, Jakarta, Friday, August 26.

Actually, said Arsal, the effect of this royalty increase is not relatively large for this year. However, he admitted that for next year it might have a slight impact on the company's profit.

"Later next year it may have an impact. We have tried to calculate to see what the market conditions are like," he said.

Even so, Arsal is optimistic that the company can anticipate it. Moreover, continued Arsal, the company's current financial condition is still quite healthy. The increase in royalties is considered to have an impact of around 5 percent on the company's expenses.

"A rough calculation, now the impact on the projected profit for 2022 is approximately 5 percent. We are still calculating this with the hope that later if the volume increases and the price increases, of course the profit effect will not be too significant," he said.