IMA: Coal production relaxation to maximise state revenue

Jakarta (ANTARA) - The Indonesian Mining Association (IMA-API) has welcomed the plan by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, to provide coal production relaxation to maximise state revenue.

“This production relaxation policy is becoming increasingly relevant for businesses amidst the current trend of the strengthening US dollar exchange rate,” said Sari Esayanti, Executive Director of API-IMA, in an official statement confirmed from Jakarta on Tuesday.

Sari emphasised that this measured relaxation policy is crucial to ensuring the mining sector remains resilient and capable of providing maximum contributions to the national economy amidst global uncertainty.

“The rise of the US dollar is indeed advantageous because coal export transactions use the US dollar, so income converted into rupiah will increase,” she said.

“We know that the main components of mine operations, such as fuel, heavy equipment, and spare parts, are highly dependent on imports, the prices of which are being driven up by the strong dollar,” Sari added.

According to Sari, this relaxation provides space for companies to compensate for high operational costs.

“Looking at the real situation on the ground, the pressure of high operational costs and the reduction in production quotas have forced some mines to halt production. This relaxation policy from the Ministry of Energy and Mineral Resources is a breath of fresh air that can guarantee the sustainability of mining operations and is vital in preventing potential layoffs,” she said.