Indonesian Mining Association on Tuesday urged the government to reconsider a plan to hike royalty rates for mining products as miners are already struggling with rising operational costs and tight cash flow.Indonesia is considering raising royalties paid by mining companies from commodities like coal, nickel, copper, gold and tin, a proposal authorities said was intended to improve industry governance.“A royalty hike will increase the burden for the business community and it can affect production and investment plans,” the group’s executive director Hendra Sinadia said.“We request that the government reconsider the plan to increase the tariffs, especially given state revenues from the mining sector have exceeded targets in recent years,” he said.Miners are already facing a host of policy changes impacting their finances, such as the removal of subsidies on biodiesel for industrial use and a 6.5% hike in regional minimum wages, and the mandatory use of a government-determined coal benchmark price for transactions, Hendra said.
Source https://djakarta-miningclub.com