East Kutai question tax contribution of Indominco

The East Kutai district in East Kalimantan questions the tax payment of coal mining firm PT Indominco Mandiri that has mining operation in the area, according to the local Jaya Post daily.

Deputy speaker of the local council Bahrid Buseng said that Indominco had paid its taxes to the Kutai administration, not to the East Kutai district administration.

He said that this was a violation of the existing law.

The East Kutai district was part of the Kutai district a year ago. But now it is a separate district.

Bahrid said that the council would form a special team to investigate the case. He said that the East Kutai administration should have obtained billions of cash from the Indominco tax.

Indominco which produced 3.5 million tons of coal last year is controlled by Thai coal giant Banpu Plc, (*)