Adaro has not paid retribution fee to local govt: official

Giant coal mining company PT Adaro Indonesia has not paid retribution fee to the local Tabalong administration in South Kalimantan, according to a senior official of the National Land Agency (BPN).

Suryono, the BPN official, was quoted by the local Banjarmasin Post daily as saying that Adaro, which is owned by a consortium of Australian, Dutch and local investors, was supposed to pay retribution fee for the location permit issued by the local administration on some 5,185 ha mining site.

Suryono said that Adaro had declined to pay the retribution fee because according to its contract with the central government, funds for local administration had been already included in the tax and royalty paid to the central government.

But he said that under the current autonomy era, such ruling should no longer applies because the Tabalong regency should obtain greater benefit from its coal resources.

Separately, member of the local Tabalong council legislative Hatamsyah said that the council?s commission fee planned to summon Adaro management over the retribution fee issue.

Hatamsyah that Adaro was supposed to pays some Rp 260 million in retribution fee to the local administration.(*)