APBI to petition for judicial review of coal export tax rule

The Association of Indonesian Coal Miners (APBI) would petition the Supreme Court next week to carry out a judicial review of the regulation issued by the Ministry of Finance imposing a 5 percent tax on coal exports.

APBI?s executive director Sujoko said the association considered the issuance of the regulation was in conflict with the existing laws.

?We attached a technical and legal assessment in the judicial review petition,? Sujoko told reporters on the sidelines of a seminar in Jakarta on Tuesday.

The Ministry of Finance issued a decree to impose a 5 percent tax on coal exports in October last year and set the base price for the calculation of the export tax at US$30 per ton early this year.

The government argues the policy is necessary for the effort to curb coal exports and provide greater supply of coal to the local market.

The regulation does not affect the holders of the First Generation Coal Contract of Work (CCoW) who have fixed tax obligation under the contract. The government, however, imposes the taxes on all coal producers with the promise of reimbursing the tax payment by the First Generation CCoW holders. It remains unclear how the government will reimburse the tax payment. (Godang)