Bengkulu?s legislators demand for an increase in coal royalty

Bengkulu?s Regional Legislative Council has demanded that the royalty fee from the sale of coal must be increased to Rp 5,000 per ton from the current Rp 150 per ton or a jump of 33 times compared to the present rate, Kompas reported Tuesday.

?The demand is very fair because whatever the royalty Bengkulu has been receiving so far from the sale of coal is not in proportion if we compare to the damages to the roads caused by the coal trucks passing through them,? Sismansidi, deputy chairman of the Council?s Commission C, said in Bengkulu on Monday.

"Even if we calculate, it is much lower than the fee of Rp 19,500 per ton paid by the mining companies to port operator PT Pelabuhan Indonesia II,? Sismansidi said.

Within a very short time, the Council will hold a dialog with various coal mining business-related groups. This dialog is primarily aimed to increase the royalty fee to a reasonable level, Sismansidi said.

According to Sismansidi, the royalty will become a major source of income for Bengkulu province. Currently, eight coal mining companies are operating in Bengkulu. (*)