Coal Mining Companies Address Potential Export Duty

Industry Response to Proposed Regulation

Major Indonesian coal mining companies, including PT Bukit Asam Tbk (PTBA), PT ABM Investama Tbk (ABMM), and PT Indo Tambangraya Megah Tbk (ITMG), have commented on the Indonesian government's consideration of implementing an export duty on coal. The companies recognize the government's authority to establish fiscal policies while highlighting concerns about the potential effects on the domestic coal industry.

Key Considerations and Concerns

Eko Prayitno, Corporate Secretary Division Head at PTBA, stated that while the company respects and will comply with government regulations, there are several factors that need careful consideration. The primary concern revolves around the volatile global coal prices, which could significantly impact the industry's operations and profitability. The companies are open to discussing the matter further with regulators to address these concerns.

Implications for the Domestic Coal Industry

The potential implementation of an export duty on coal is seen as part of the government's broader effort to optimize state revenues and ensure the optimal value of natural resources. However, industry players are cautious about how this policy could affect their business operations and the overall competitiveness of Indonesian coal in the global market. The companies are particularly concerned about the impact of such a policy on their export activities and the potential for retaliatory measures from importing countries.

Path Forward

The coal mining companies have expressed their willingness to engage in discussions with the government to find a balanced approach that considers both the need for state revenue optimization and the sustainability of the coal industry. The outcome of these discussions is expected to shape the future of Indonesia's coal export policies and have significant implications for the industry's growth and development.