Indonesia to impose coal export tax next month -govt official

Indonesia will impose a 1.5 percent tax on coal exports from next month, government officials said on Monday, in a bid to boost state revenue and keep more of the power station fuel at home.

The world’s top thermal coal exporter will introduce the tax on Aug. 8 for firms with newer mining licences, known as IUPs.

“It only applies for IUPs and traders who export coal,” Gultom Guska, senior coal official with the mines ministry, told Reuters.

Larger, older generation firms with so-called Contracts of Work, such as Bumi Resources and Berau Coal Energy , will be unaffected, he said.

Indonesia ships about $2 billion of coal a month, but it wants to keep more of the fuel to feed ballooning domestic power demand and also wants more revenue from the mining sector.

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