Indonesia to remove royalty payments for coal

According to a government regulation, Indonesia is removing royalty payments for downstream coal so as to boost its coal processing industries.

It intends to replace energy imports, such as refining coal to gas with the aim of reducing its liquefied petroleum gas imports and optimising domestic coal usage. A further regulation issued by the energy ministry will clarify which coal processing activities are eligible to pay 0 per cent royalties to the central government. As of now, the companies generally pay 2-7 per cent of the calorific value to coal as royalty.