IMA: Coal production relaxation to maximise state revenue

The Indonesian Mining Association (IMA-API) has welcomed the plan by Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia to provide coal production relaxation in order to maximise state revenue. “This production relaxation policy is becoming increasingly relevant for business actors amidst the current trend of US dollar strengthening,” said API-IMA Executive Director Sari Esayanti in an official statement confirmed by ANTARA from Jakarta on Tuesday. Sari stressed that this measured relaxation policy is very crucial to ensure the mining sector remains resilient and able to make a maximum contribution to the national economy amid global uncertainty. “The rise in the US dollar is indeed beneficial because coal export transactions use the dollar currency, so revenue converted to rupiah will increase,” she said. “We know that the main components of mining operations, such as fuel, heavy equipment, and spare parts, are highly dependent on imports whose prices have been pushed up due to the strong dollar,” Sari remarked. According to Sari, this relaxation provides room for companies to compensate for high operational costs. “Looking at the real situation on the ground, high operational cost pressures and reduced production quotas have forced some mines to stop their production. This relaxation policy from the Ministry of ESDM is a breath of fresh air that can guarantee the continuity of mining operations and is very important to prevent potential layoffs,” she said.