Indonesia still working on coal compensation fund plan

sxcoal.com Policy, International 2023-11-08 11:44:08

Indonesia is still finalizing rules for a scheme where coal miners would pay compensation for missing domestic sales obligations into a dedicated fund, an official said on November 7.

The scheme is being developed as the world's biggest exporter of thermal coal aims to ensure sufficient domestic supply.

Under the scheme, miners missing Domestic Market Obligation (DMO) targets pay compensation to a fund known as the MIP, which is then used to subsidize coal sales to local buyers.

Lana Saria, director of Coal Business Development at the Directorate General of Mineral and Coal of the Ministry of Energy and Mineral Resources (ESDM), said the rules were still being "matured" by the Coordinating Ministry of Maritime Affairs and Investment.

"It's still in process, still being fine-tuned at the coordinating ministry," Lana told reporters.

An issue regarding the imposition of an 11% value-added tax on coal levy and disbursement, which had previously hindered the establishment of MIP, have now been resolved, she said.

Lana hoped the rules could be completed this year as urged by mining businesses.

(Writing by Alex Guo Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article

Connect with us

1 China futures market updates at close (Feb 8) 2024-02-08

Check out latest updates on the Chinese futures market for coking coal, coke, iron ore and others at close.

2 Indonesian low-CV thermal coal prices edge up as Chinese tender prices rise 2024-02-08

Indonesian low-CV thermal coal rose slightly this week despite light demand from Chinese traders who were leaving their desks for the Chinese New Year holiday. The momentum was mainly gained from a ri

3 China's coking coal mines see output, inventory fall as holiday nears 2024-02-08

Coking coal output continued falling in China's major production areas, as more mines suspended extraction for the Chinese New Year holiday break. Inventories at mines also decreased amid output contr

4 Newcastle port Jan coal exports up over 30% on yr 2024-02-08

Newcastle port, the world's largest coal port located in Australia's New South Wales, registered an obvious year-on-year increase of coal exports in January, despite falling from the previous month's

5 Weekly global coal market news summary (Feb 4-8) 2024-02-08

Newcastle coal prices fall after two-day rally as supply outlook weighsNewcastle thermal coal futures slipped on February 6, pulling back from a two-session gain, as higher projected output from major

6 Weekly China coal market news summary (Feb 4-8) 2024-02-08

Summary: coke & steel-related initiatives in major Chinese provinces' 2024 work plansChina's major provinces and regions have recently released their government work reports, reflecting on their achie

7 China's PPI, CPI drops abate in Jan, yet economic concerns persist 2024-02-08

China's producer price index (PPI), gauging the cost of goods at the factory gate, fell 2.5% year on year in January, compared with a 2.7% decrease a month ago, official data showed on February 8.On a

8 Russian coal exports to SE, S Asia surge in 2023, Kpler 2024-02-08

Exports of Russian coal to Southeast and South Asian countries soared in 2023 after supplies to the EU were banned due to the Russia-Ukraine conflict, according to data from the cargo-tracking firm Kp

9 China Coal Daily Track (Feb 8) 2024-02-08

Thermal coalProduction area Most private mines in main producing regions have suspended operations for the Chinese New Year holiday, while those state-owned mines were still dedicated to term contract

10 Australia Jan coal exports down 13.58% on mth, Kpler 2024-02-08

Coal exports from Australia decreased 13.58% month on month to 29.06 million tonnes in January, which was still 5.72% higher than the year-ago level, according to cargo tracking data from Kpler.Japan