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Indonesia to cut mining output quotas to support prices

Indonesia to cut mining output quotas to support prices

By Kim Browne

Culture

It’s to ensure the prices of mineral commodities are “rational”, allowing the government in turn to earn more revenues

The Indonesian government will cut mining output quotas in order to support the prices of commodities like coal, Energy and Mineral Resources Minister Bahlil Lahadalia said in an interview with local news channel TvOne on Tuesday (Dec 30).

He said the government aims to ensure the prices of mineral commodities are “rational”, allowing the government in turn to earn more revenues.

“We are slashing production under the RKAB,” Bahlil said, referring to an annual production plan document submitted by miners for approval by the government.

“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,” he added.

He highlighted the current slump in coal prices, but did not give any indication how much the quotas would be cut for coal or other minerals, such as nickel.

Nickel prices in Shanghai rose over 3 per cent on Tuesday on reports about Indonesia’s plan to slash 2026 nickel output.

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Almost 200 nations signed an agreement that avoided an explicit mention of transitioning away from fossil fuels, as developing countries argued for economic growth using all energy sources.

Indonesia is the world’s top exporter of thermal coal and nickel products.

Bahlil added that the output cut is also aimed at managing the environmental impacts of mining activities. REUTERS

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Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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