Indonesia Permits Below-Benchmark Coal Sales
(MENAFN) The Indonesian government has officially affirmed that coal may be sold at prices lower than the state-mandated benchmark (HPB), but emphasized that tax and royalty obligations must still be calculated based on the benchmark rate, according to Gita Mahyarani, executive director of the Indonesian Coal Mining Association, on Tuesday.
A recent decree from the Ministry of Energy and Mineral Resources, issued earlier this month, amends prior regulations to clarify that companies holding mining business permits, special mining business permits, contracts of work, or coal mining business work agreements are permitted to transact below the HPB — provided that fiscal duties are aligned with the benchmark pricing, as reported by local media.
"This regulation confirms that sales below the benchmark price are permitted. At the same time, royalty and tax payments remain based on the HPB. Mining firms have always been required to follow this mechanism," Gita stated.
The announcement comes as Indonesia's coal sector hits new production records. In 2024, national output surged to 836 million tons, surpassing the 775 million tons produced the previous year.
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