Indonesia temporarily does not impose coal export tariffs

In early August, the relevant person in charge of the Indonesian Ministry of Mines and Energy stated that the Indonesian government has decided to cancel the plan to impose export tariffs on coal, and the policy of restricting the export of thermal coal with low calorific value will also be abolished.

The abolition of coal export tax collection and restrictions on the export of low calorific value steam coal are mainly due to the firm opposition of Indonesia's major coal producers. At present, Indonesia’s major coal production and export companies and foreign coal import companies hold large purchase orders. Once coal export tariffs are imposed and thermal coal exports with low calorific values ​​are limited, Indonesia’s coal companies will suffer a series of defaults, rising costs, and a sudden drop in profits. loss. At the same time, the profits of coal companies have fallen sharply, and government revenue is bound to shrink seriously.

In order to ensure the stability of its domestic coal supply and meet the coal demand of power companies, the Indonesian government will continue to introduce relevant measures to limit excessive coal mining and raise the resource tax rate for the production of low-quality steam coal companies by 3 to 5 percentage points. To 13.5% or so.