Adaro requests timely disbursement of royalty funds

A senior official at coalminer PT Adaro Indonesia Tuesday called on the central government not to postpone the disbursement of coal royalty funds to South Kalimantan?s Hulu Sungai Utara regency where the company has coal mining operations.

Adaro?s administrative manager Priyadi told Petromindo.Com that the company had paid the coal royalty to the central government in accordance with existing regulations.

?The central government should disburse the (royalty) fund to the regions on time," Priyadi said.

He was responding to a local press report quoting regency officials as saying that the company had not paid the royalty fund.

The local Banjarmasin Post reported recently that the amount of royalty payable by Adaro to the regency totaled Rp17.9 billion (US$=Rp8,200), including Rp9.8 billion for 2001 and Rp8.1 billion for 2002.

Existing regulations oblige coal producers to pay royalty amounting to 13.5 percent of their production through the ministry of finance. The ministry retains about 20 percent of the royalty payment as the central government?s revenue, while the remaining 80 percent should be transferred to coal producing regions (provinces and regencies).

Adaro is one of Indonesia?s top coal producers with coal output reaching 21 million tons last year.

It had set a target to produce 22 million tons of coal this year. (godang)