The Indonesian Coal Mining Association (APBI) stated that the revision of the Reference Coal Price (HBA) formula is very urgent. Executive Director of APBI, Hendra Sinadi said, since October 2021 the disparity between HBA and the actual selling price of exports has widened.
"Revisions are urgent so that HBA/HPB can represent market prices. This condition makes it difficult for companies because they pay much higher royalty obligations, especially since the increase in coal royalty rates has been implemented," he explained to Kontan.co.id, Monday (9/1).
The revision of the HBA is also considered important before implementing the Coal Public Service Agency (BLU). Hendra said that the revision of the HBA to ensure a fair BLU mechanism for business actors is certainly so that the tariffs charged are close to the actual selling price.
In discussing BLU, Hendra explained, APBI has conveyed the attention of business actors and hopes that BLU can guarantee equality and consider the HBA formula which no longer reflects the real selling price.
"The government in this case has fully understood the conditions and the pros and cons of various schemes so we leave it to the Government the best scheme because miners have paid PNBP obligations including royalties, taxes and other obligations in accordance with regulations," he said.
The request of business actors is also supported by the legislator in this case Commission VII DPR RI. In October 2022, the Deputy Chairman of Commission VII of the House of Representatives, Dony Maryadi Oekan, had urged the Directorate General of Minerals and Coal (Dirjen Minerba) to provide clarity regarding the calculation of HBA in the Domestic Market Obligation (DMO) compensation fund collection scheme which blu plans to do.
"This BLU has a standard later, that standard is from the price and expenses made by the mining company itself, namely HBA. Regarding this HBA, the calculation must be clear," he explained in an official statement, Friday (14/10).
Dony stated this after hearing many complaints from miners regarding the large difference in coal prices on the domestic index, namely the Indonesia Coal Index (ICI) and the international index.
Based on the plan, the dues paid by miners to BLU will follow the HBA. Therefore, the large difference in coal prices is considered to cause the application of BLU to be burdensome for miners, especially for small miners, considering that the HBA is determined based on the international market index
Image source: KONTAN/Febriana Ratna Iskana
