Government to discipline KP holders

Government will discipline some of 2,856 mining contract (KP) holders because they have been awarded with the contracts without consent of the central government, Bisnis Indonesia Daily reported.

 

Director of Coal, Mineral and Geothermal Development at the Ministry of Energy and Mineral Resources MS Marpaung disclosed on Wednesday that only 144 of the KP holders got their contracts from the central government.

 

“We have never issued KP since 2001,” he said in Jakarta on Wednesday.

 

Under the existing regulation, KP holders have to distribute their royalties to the central government, the provincial government, the regency where they operate and the surrounding regencies. However, in fact, the central government had never received any royalty from the KP holders that got contracts from the local governments.

 

The ministry will prepare 1,000 personal to supervise their production and sale. It is expected to be operating early next year, Marpaung added. (*)