Coal miners lose Rp 100 billion in potential revenue per month
Friday, March 31 2000 - 04:00 AM WIB
Coal miners in South Kalimantan lose more than Rp 100 billion in potential revenue per month following the provincial administration's decision to bar coal trucks from entering public roads in the province, Jawa Pos reported.
The paper quoted secretary of Coal Businessmen Association (Ikabara) of the province Wiranata Halim said the provincial administration's decision to bar coal trucks from entering the public roads as of Jan. 1, 2000 had severely affected the operations of 14 small scale coal mining companies grouped in Ikabara.
The decision hampered the transportation of their coal, he said.
He said the province had experienced small impact of the economic crisis due to the operations of the coal mining companies, which had given a large contribution to the revenue of te local people amid the economic crisis.
"The fact that people in South Kalimantan remained fine amid the monetary crisis was because of the coal boom. The coal revenues were being enjoyed by all people, including coal miners, drivers of coal trucks, to owners of streetside food stalls, and ojek (motorbike taxi) drivers. As of Jan. 1, 2000, all sectors were paralyzed. Around 3,000 people directly involved in the coal mining activities have lost their jobs and streetside food stalls lose customers," he said in a press conference on Thursday.
The small-scale mining companies are labeled by the government and in the mining industry as "illegal miners".
Association advisor Syamsuri Darham asked the provincial administration to ease the ruling to allow coal trucks to enter public roads in the evening.
He said the coal companies grouped in the association would be ready to pay the provincial administrations between Rp 5,000 and Rp 20,000 per ton in royalties.
"If we are still obliged to give 13.5 percent of our output in royalties to the government, we shall be only ready to pay the provincial administration Rp 5,000 per ton in royalties. But if the 13.5 percent royalty obligation was lifted, we shall be ready to pay Rp 20,000 per ton in royalties to the province," Syamsuri said.
Under the existing regulation, coal mining companies are obliged to deliver 13.5 percent of its output in royalties to the government, but illegal miners rarely fulfilled the obligation. (*)