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.