Indonesia has cut mining output quotas to support the prices of commodities like coal.
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the government wants to safeguard the price of mineral commodities in order for the government to earn more revenues, Reuters reported, citing the minister’s interview with local news channel TvOne.
The government is slashing quotas under the RKAB, which are state production permits for mining companies.
“When the prices are good, businesses can reap better profit and the state can collect better royalties and taxes. This is what we are working on now,” Bahlil said.
The minister cited the current slump in coal prices, but did not disclose how much quotas would be cut for coal or other minerals.
Bahlil said the output cut is also aimed at managing the environmental impacts of mining activities.
Indonesia is the world’s top exporter of thermal coal and nickel products.
