From Left Pocket to Right Pocket Determination Of Coal Price For Domestic And Export Market

This study explores the pricing of natural resource commodities that affect the proportion of tax and non-tax revenues. Commodity prices are influenced by demand and supply in the global market, which are further controlled by various policies in producing and consuming countries. Especially for coal in Indonesia, price fluctuations are greatly influenced by changes in demand from countries such as China and India.

Coal mining companies in Indonesia are required to sell coal according to the prices stipulated in government regulations. This policy applies to sales both domestically and abroad, which refer to export trading activities and sales to mining business license operating partners. The Directorate General of Minerals and Coal has announced coal price references and thermal coal reference prices on a monthly basis since 2010 based on the Regulation of the Minister of Energy and Mineral Resources Number 17 of 2010, which was later amended by Ministerial Regulation No. 07/2017.

This Policy Note was prepared by Article 33 Indonesia to map strategic issues related to governance in the natural resources sector. This research aims to provide insight into the impact of pricing on state revenues, as well as provide relevant recommendations for policy makers to support more transparent and sustainable management in the sector. By improving governance in this sector, it is expected to increase state revenues more effectively and efficiently.

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