Indonesia outlines coal export tax plan

INDONESIA, the world’s second largest coal exporter, has confirmed it will subject coal to an export tax.
Indonesia outlines coal export tax plan Indonesia outlines coal export tax plan Indonesia outlines coal export tax plan Indonesia outlines coal export tax plan Indonesia outlines coal export tax plan

 

Lauren Barrett

The tax will create substantial benefits for the country, including increasing state revenue and protecting the environment, Reuters reports.

While the country announced it would apply export to other minerals, until now it had been undecided on whether to impose the same legislation for coal.

Indonesian Foreign Trade Director General Deddy Saleh confirmed the export tax on coal to the news service.

“We have come to the conclusion that coal has to be subjected to export tax,” Saleh was quoted as saying.

“We need to apply export tax on coal to prevent overexploitation, to maintain our coal reserve, to protect our environment and to increase state earnings.”

The move to introduce an export tax on coal forms part of Indonesia’s plan to introduce new mining reforms.

Earlier in the year, the Indonesian Mining and Energy Ministry caused investor uncertainty when it announced foreign-owned companies holding mining permits in Indonesia would be required to begin divesting stakes to Indonesian entities once a mine was in its sixth year of production.

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