AGO investigates Gunung Bayan transfer pricing allegation
Monday, October 1 2007 - 12:52 AM WIB
Attorney General Office (AGO) will investigate transfer-pricing practices allegedly conducted by East Kalimantan coal miner PT.Gunung Bayan Pratamacoal, which may have caused huge loss to the state, Kontan Daily reported on Monday, citing Deputy Attorney General Kemas Yahya Rahman.
The daily reported that Gunung Bayan was suspected selling its coal production to an overseas affiliated company much lower than market price. The affiliated company then sold the coal to another party at higher price.
Kutai Barat Regent Ismail Thomas, who reported the case to AGO, calculated that in 2005-2006 Gunung Bayan sold its coal at US$24 per tonne, while market price at that period for coal with similar CV had reached $50 per tonne.
Gunung Bayan is controlled by Malaysian businessman Dato? Low Tuck Kwong, which operates under the Bayan Group. Bayan Group is reportedly being offered to JSX-listed Conglomerates PT.Astra Internasional for sale. (*)