Central Kalimantan regency asks Indo Muro to directly deliver royalties

The North Barito regency council in Central Kalimantan called on gold mining company PT Indo Muro Kencana to directly deliver its mining royalties to the regency administration.

Tauhidin Noor DS, a commission head at the council, said the subsidiary of Australian mining firm Aurora Gold, had thus far delivered its royalties to the central government without making any report to the local administration.

This reflected the company?s ?arrogance?, he was quoted as saying on Thursday by South Kalimantan-based daily Banjarmasin Post.

Under the existing regulation, the regency is entitled to 80 percent of the royalties and the central government takes the remaining 20 percent.

But, he said, the regency administration always faced difficulties to obtain its share in the royalties from the central government.

Many times, the regency administration has to go Jakarta to take the royalties, which is a costly effort, he said.

According head of the regency tax office, Pupu Hermansyah, the regency?s royalty earnings from Indo Muro stood at Rp 3.3 billion (US$=Rp 11,190) last year, exceeding the target of Rp 2 billion.

This year, the regency has targeted the Indo Muro royalty earnings at Rp 2.5 billion, but thus far, it had yet to receive any of the royalty form the central government, Pupu said. (*)