The proposed plans come at the time when global coal prices are sliding, and will significantly affect small miners and start ups.
The government is seeking to tighten its controls on the sector, which is majority governed by local administrations, in response to violation of rules by miners.
Coal and Minerals Director General Sukhyar said: "The main impact will be felt by companies (mining) low calorie (coal)."
The plan, if implemented, will increase non-tax revenue from coal and minerals segment to IDR52.2tn ($4.05bn) this year, compared to IDR35.4tn in 2014.
The Indonesian Coal Mining Association (ICMA) has urged the government to postpone higher royalty hike plans until coal prices rise to $80 per ton from around $72 now.
Indonesia’s total coal production is estimated to comprise 30% of low-calorie type. The country is expected to produce 425 million tons this year.
Reuters reported that Indonesia intends to scale down coal production to 400 million tons a year by 2019, while increasing domestic consumption to around 190 million tons.
