Jakarta (ANTARA) -<\/p>\n
The Indonesian Young Entrepreneurs Association (HIPMI) proposes that\nthe planned implementation of coal export duty policy be carried out\nflexibly with a price-based scheme to maintain a balance between state\nrevenues and business sustainability.<\/p>\n
General Secretary of the HIPMI Central Board and Chairman of\nASPEBINDO, Anggawira, stated that the policy needs to be designed\nadaptively in line with global market dynamics.<\/p>\n
\u201cWe propose the use of a progressive price-based mechanism. It should\nbe applied flexibly following commodity cycles,\u201d said Anggawira in\nJakarta on Thursday.<\/p>\n
According to him, this step is important so that fiscal policy does\nnot instead pressure the competitiveness of coal exports, at a time when\nIndonesia has the opportunity to become a global energy supplier.<\/p>\n
Furthermore, he said that the government indeed needs to safeguard\nstate revenues amid geopolitical pressures and energy price volatility.\nHowever, the policy design must also consider the industry\u2019s current\nconditions, which face various challenges, from price fluctuations,\nrising logistics costs, to demand uncertainty.<\/p>\n
\u201cThe formulation of the policy needs to involve business actors so\nthat it is more targeted and does not cause distortions in the field,\u201d\nhe stated.<\/p>\n
Furthermore, Anggawira emphasised the importance of adjusting the\nDomestic Market Obligation (DMO) policy to avoid creating a double\nburden for industry players.<\/p>\n
Currently, the DMO coal price for power plant needs is still pegged\nat around US$70 per tonne, while production costs and global market\nprices have increased significantly.<\/p>\n
\u201cIf export duties are applied without DMO adjustments, there will be\ndouble pressure on business players. On the export side, export duties\nare imposed, while on the domestic side, prices are still capped,\u201d he\nsaid.<\/p>\n
For this reason, the association proposes a mechanism for gradual and\nrealistic DMO price adjustments, or a compensation scheme that can\nmaintain a balance between state interests and the business world.<\/p>\n
On the other hand, Anggawira also warned that export duty policy will\ndirectly impact business margins, especially for medium and small-scale\nbusiness players who are more vulnerable compared to large\ncompanies.<\/p>\n
Several potential impacts that could arise include declining cash\nflow, delays in investment and exploration, and pressure on production\nsustainability.<\/p>\n
In the medium term, this situation could risk affecting the national\ncoal supply if not anticipated properly.<\/p>\n
Nevertheless, HIPMI views this policy as also an opportunity to\nencourage coal downstreaming and increase domestic value added, as long\nas it is designed appropriately and balanced.<\/p>\n
\u201cFiscal policy should strengthen that position, not weaken it,\u201d said\nAnggawira.<\/p>\n
Finance Minister Purbaya Yudhi Sadewa targets the coal export duty\nregulation to take effect from 1 April 2026. In addition to coal, the\nGovernment is also preparing regulations for special nickel export\nduties.<\/p>\n
The export duty rates for coal and nickel commodities have actually\nbeen approved by the President. However, the policy details will be\ndiscussed again across ministries and agencies in the Coordinating\nMinistry for Economic Affairs.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/hipmi-proposes-flexible-coal-export-duty-scheme-based-on-price-1774529479", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }