Govt expects to collect Rp 599 billion in coal fund this year
Wednesday, February 14 2001 - 04:30 AM WIB
The government was expected to collect Rp 599.25 billion (US$ = Rp 9,608) in the so-called "coal fund" this year, up from Rp 544.8 billion last year, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday.
Purnomo in a written statement presented during a working meeting with the House of Representatives' Commission VIII for energy and mineral resources, environment, science and technology said the government earned Rp 554.8 billion in coal fund last year, 0.5 percent higher than the target of Rp 522.47 billion.
The coal fund, locally known as "fund from coal production" (DHPB), which is categorized as non-tax earnings.
Under contracts, the country's coal producers have to hand over 13 percent of its output or the proceeds of the output to the government.
The 13 percent government's output share includes 1.2 percent in value added tax, six percent in royalties and 6.3 percent in the so-called "fund from coal production".
Under the Income Sharing between Central and Regional Governments Law No. 25/1999, the central government takes 20 percent of the royalty with the remaining 80 percent going to the coffer of the province and the region, which produce the coal.
The 1.2 percent value added tax and the 6.3 percent coal fund" go to the central government.
Answering the written questions made by the Commission prior to the meeting, Purnomo explained that the ministry had used Rp 149.80 billion of last year's Rp 544.8 billion coal fund on the permission from the ministry of finance.
He said the money was used to finance the activities of the ministry's secretary general, regional offices, inspectorate general, directorate general of general mining and directorate general of geology and mineral resources.
Purnomo further explained that the ministry planned to use Rp 155.93 billion of the Rp 599.25 billion target coal fund this year. (Godang/Bodega)