Jakarta. Indonesia exceeded its mineral and coal revenue target last year thanks to improved payment compliance and rising global commodity prices, creating optimism that the sector will meet its revenue target for 2018.
As of Dec. 29, revenue from minerals and coal reached Rp 40.6 trillion ($3 billion), or 25 percent of the target set in the 2017 revised state budget (Rp 32.7 trillion). The figure is a 48 percent increase from last year’s Rp 27.2 trillion.
The state budget for 2018 outlines a revenue target for the sector at Rp 32.1 trillion.
"We are optimistic [to meet the target]," said Bambang Gatot Ariyono, director general of minerals and coal at the Ministry of Energy and Mineral Resources.
He noted that the coal price reference was cited at $94.04 per metric ton in December, 9 percent higher than the $86.23 per metric ton recorded in the beginning of last year. The government assumed a price of $80 per ton of coal when it formulated the 2018 revenue target last year.
Bambang said other commodity prices improved last year and demand for mineral exports also surged as the global economy started to recover.
Miners also paid Rp 23.2 trillion in royalty payments last year, or 57 percent of all royalty payments. As much as Rp 500 billion of that sum were fees imposed by the government. Mineral and coal sales totaled Rp 16.9 trillion in 2017.
This month, the ministry will start to implement an electronic payment and recording system, called e-PBNP, which is expected to ease payments.