Central govt ruling seen as blocking regions from enjoying coal royalty fee

The central government ruling PP No. 144/2000 has been seen as a factor causing coal-producing regions particularly the Tabalong regency in South Kalimantan to be unable to obtain the coal royalty revenue on time.

The local Banjarmasin Post daily quoted treasurer of the Tabalong regency administration Roswan Noviar as saying that based on the ruling, coal mining companies had to pay the royalty to the central government which in turn would redistribute it to the particular region.

Roswan said that the Tabalong administration planned to go to Jakarta this week to meet finance ministry officials because the administration had yet to obtain the copy of the ruling.

He said that he was aware of the ruling when his office met with coal mining firm PT Adaro Indonesia to check whether the company had paid its royalty obligation.

Roswan said that for the 2000 budget year, the coal royalty which had not been paid amounted to Rp 1.3 billion (US$1=Rp 9,100).(*)