Coal companies to sue tax director general in administrative court

Indonesia?s coal entrepreneurs will sue the directorate general of tax in the state administrative court because it had discriminated coal enterprises against bricket companies by exempting the former from value added taxes.

Speaking in a news conference in Jakarta today, leaders of Indonesia?s Coal Mining Association (APBI) questioned the recent ruling issued by the director general which placed coal into the category of items not subject to value added tax.

They argued that the government?s move would cause an increase by 10 percent of their production costs. It could also cause them to experience cash flow problems in the future, they added.

?The directorate general should be more careful in issuing new rulings and should take into account all aspects related to their implementation. It should not merely focus on meeting tax revenue targets,? the association leaders said.

The leaders included those from PT Kideco Jaya Agung, PT Kaltim Prima Coal and PT Adaro Indonesia (godang)