Jakarta: The Indonesian government has announced that coal can be sold below the coal benchmark price, known as the HPB. However, it has been emphasized that tax and royalty payments must still be calculated based on the benchmark price. This clarification was made by Gita Mahyarani, executive director of the Indonesian Coal Mining Association.

According to Namibia Press Agency, the Ministry of Energy and Mineral Resources issued a decree this month revising earlier regulations. The decree confirms that holders of mining business permits, special mining business permits, contracts of work, and coal mining business work agreements are allowed to conduct sales below the HPB, provided that taxes and royalties are paid according to the benchmark price. Gita Mahyarani stated, “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.”

In 2024, Indonesia reported a record-high coal production of 836 million tons, surpassing the previous year’s output of 775 million tons.