Adaro suggests a direct royalty payment to local administration

Indonesia's largest coal mining contractor PT Adaro Indonesia suggested on Tuesday a direct royalty payment to the local administration.

Adaro operational manager Putu Sastrawan was quoted by Kompas as saying that the local administration had to pass through a long bureaucracy in the current system where the royalty was first transferred to the central government in Jakarta.

He said that Adaro wanted the royalty to be directly paid to the South Kalimantan administration and the local administration where the company's mining sites were located.(*)