Constitutional Court rules in favor of mining services companies

By Thomas Sembiring

The Constitutional Court has ruled in favor of mining services companies, which filed a judicial review of the traffic and transportation law.

The mining services companies including PT Tunas Jaya Pratama, PT Multi Prima Universal, and PT Marga Maju Mapan filed the judicial review in late 2014 as they protested the law which categorized heavy equipment as automotive vehicle which are thus subject to automotive vehicle tax.

Tjahjono Imawan, Head of Aspind, the Association of Indonesia Mining Services Companies, said Monday that heavy equipment is not vehicle used for transportation but should be considered as production tools.

He said that with the issuance of the Constitutional Court ruling, mining services companies should no longer pay the automotive vehicle tax to local administrations. ?Don?t be afraid (to reject) if they (local governments) request for the tax payment,? he said.

He added that the issue is not about the amount of the tax, but it?s about fairness.

Editing by Reiner Simanjuntak