Coal miners to give Rp 600b as guarantee for royalty payment
Tuesday, September 2 2008 - 01:30 AM WIB
The five companies include PT Adaro Indonesia which will provide Rp 150 billion, PT Arutmin Indonesia (Rp 100 billion), PT Kaltim Prima Coal (Rp 150 billion), PT Kideco Indonesia Rp 110 billion, PT Berau Coal (Rp 90 billion).
The commitment was made by the five companies? executives during a closed meeting with the state development controller BPKP last week. The representative of PT BHP Kendilo who is also among those which did not pay royalties did not attend the meeting.
Speaking to reporters following the meeting, BPKP chairman Didi Widayadi said that the executives of the five companies voluntarily agreed to transfer Rp 600 billion in cash to the government?s account as a guarantee that they would settled the payment of their unpaid royalties.
Didi said that the five coal miners? agreement to provide the guarantee indicated their willingness to settle the dispute. ?We hope with such a good will, the dispute can be soon be ended,? he added.
Didi said BHP Kendilo, which was absent from the meeting, had stopped operation. It had rached an agreement with the government regarding the royalty payment.
The government will audit the royalty payments to determine whether the amount is correct, he said. But he did not say whether the travel ban would be lifted once the companies paid the guarantee, as that will be decided after the government audit.
The six companies withheld payment of royalties of about Rp 3.36 trillion related to their coal sales for the period between 2001 and 2006 as compensation for the government?s refusal to refund their value added tax (VAT) during the same period.
Earlier last month, government imposed a travel ban on 14 executives at the six coal firms for their refusal to settle the unpaid royalties. (bernard)