East Kalimantan authority asked to ban KPC from using public road

Members of the legislative council of the East Kutai regency in East Kalimantan urged the local government to ban coalminer PT Kaltim Prima Coal (KPC) from using the public road in transporting its coal products, Kaltim Pos daily reported on Friday.

Vice Chairman of the legislative council of the Kutai Timur regency Ardiansyah said in the regency's town of Sangatta on Thursday that the tough measure was necessary because KPC had continued to refuse to pay the transportation levy despite the local government's warning.

KPC, one of the country's major coal producers, refused to pay transportation levy worth about Rp 363 million to the regency's administration on the ground that the money had been paid to the central government in Jakarta as part of the payment that have to be made by the company under the existing contract.

"KPC always hides in the central government's arm," Semkarta, another member of the legislative council, said. He said that the local government also has the right to get beneficial benefits from companies operating within its authority. (*)