Arutmin?s export halted as customs implementing coal export tax
Monday, February 20 2006 - 12:25 PM WIB
Bambang Hartoyo, an official at the ministry of energy and mineral resources told petromindo.com that Arutmin had been barred to ship its coal production abroad since the Saturday.
?The custom official would not let ship pass through before paying the export tax,? he said. He fell short to mention the number of vessels that were being delayed, but T. Soedjoko, executive director of Indonesian Coal Mining Association (ICMA) said that three export vessels in Arutmin?s loading port were barred by customs from leaving.
Sonny Pangestu, Arutmin?s senior official when contacted by Petromindo.Com confirmed that customs office had halted Arutmin?s export since Saturday, causing the company to pay demurrage fee.
The government last year issued a controversial ruling that obligate coal exporters to pay 5 percent tax but coal mining companies contested the ruling to the administrative court, but thus far the ruling was not yet fully implemented. According to Simon Sembiring, Director General of Mineral and Coal at the ministry of energy and mineral resources, directorate general of customs and excise had implemented the tax export ruling effective February 10, 2006. ICMA had been voicing concern about the implementation of the tax, saying that the ruling would deteriorate Indonesia?s competitiveness. More over, argued ICMA, Indonesia?s major coal exporters are protected by their Coal Contract of Works (CCoW) from paying taxes that are not specified in the CCoW.
Ministry of commerce had issued decree to set US$ 28 per tonne as basis for counting the coal export tax for February-March 2006 period. The basis price would be revised mothly.
Bambang Hartoyo said thus far, Arutmin was the only coal company reported that its export was halted due to coal tax export obligation. But the customs office move had sent worrying signal to other coal exporters. ?We are worried that the same case will also befall Adaro?s export,? said Adaro Indonesia official Priyadi.
Sembiring said that implementation of tax export could endanger Indonesia?s coal export as coal companies would be reluctant to pay the tax that were not clearly defined.
Soedjoko said that ICMA members would convene to talk about the problem and would soon determine its stance on the issue.
Indonesia is currently the world?s largest thermal coal exporter, shipping 111 million tones of the fuel last year and plan to ship 120 million tones this year. (godang)