A royalty increase would add to costs for miners amid declining coal prices and weak demand for the power-station fuel. Indonesia recently cut its benchmark price for an eighth month, pegging coal with a gross heating value of 6,322 kilocalories per kilogram (Kcal/kg) at $62.92 a metric ton for February. That’s the lowest level since May 2009. He said that coal with less than 5,100 Kcal/kg heating value on an air-dried basis will be subject to royalties of 7%, up from 3% currently under the January 2012 regulation. Medium-grade cargoes of 5,100 to 6,100 Kcal/kg will pay 9%, up from 5%. High-quality shipments of more than 6,100 Kcal/kg will pay 13.5%, up from 7%.