Perhapi Seeks Fairer Policies for Indonesia’s Coal Industry
Key Takeaways
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JAKARTA, Investortrust.id – The Indonesian Society of Mining Professionals (Perhapi) has called on the government to revise regulations governing the coal mining industry, warning that excessive burdens could discourage investment.
FH Kristiono, Head of Perhapi’s Coal Studies Division, said current policies leave little room for miners to reinvest in downstream projects such as coal-based chemical production.
"With all these burdens, we, as miners, are supposed to save our profits to reinvest. How are we supposed to invest $1.2 billion just to produce DMA [Dimethyl Ether]? Or methanol, which costs nearly $2.7 billion? If we’re being heavily taxed without support, how can we move forward?" Kristiono said during the Focus Group Discussion (FGD) “Coal and National Energy Sovereignty” held at Artotel Mangkuluhur Jakarta on Wednesday, May 28, 2025.
16 Policy Issues and Taxation Concerns
Kristiono flagged 16 regulatory issues currently affecting the coal sector, including what he described as unreasonable taxation on mining equipment.
“One strange policy is the motor vehicle tax. Our heavy equipment is being taxed like regular motorbikes on toll roads. This would be acceptable if there were offsetting incentives. But as it stands, this discourages investment in Indonesia’s mining sector,” he said.
Concerns Over Coal Concessions for Non-Commercial Entities
He also questioned the distribution of coal mining concessions to social organizations and universities—a policy regulated under Law No. 2 of 2025 on Mineral and Coal Mining.
“They reduced the number of concessions, only to increase it again. Now even universities like UGM and ITB are receiving quotas. How are we supposed to manage and supervise all this?” Kristiono added.
Other Policy Challenges
Perhapi also raised concerns about: the formation of institutional management partners (MIP), revenue-sharing mechanisms between central and regional governments, the requirement to hold export proceeds domestically, and the lack of subsidies for B40 biodiesel.
The discussion, themed “Coal and National Energy Sovereignty: Bridging Economic Realities and Climate Commitments,” was organized by Investortrust and brought together policymakers, investors, and industry leaders.
Notable speakers included: Surya Herjuna, Director of Coal Business Development at the Ministry of Energy and Mineral Resources (ESDM); Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment/BKPM; Anil Kumar Monga, Chairman of Emmsons Group; Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI); Singgih Widagdo, Chairman of the Indonesian Mining & Energy Forum (IMEF); Hanafi S Guciano, Director of the Center for Sustainability at the International Islamic University of Indonesia.
