Govt may raise contribution fee in mining sector

The government is revising a Government Regulation on non-tax levies from the mining sector, a regulatory change which will result in the increase in the contribution fees paid by mining companies.

Paul Lubis, an official of the Energy and Mineral Resources Ministry, said in Jakarta on Friday that the revision for PP 45/2003 was needed because the current contribution levies are considered "too small".

?The revision is currently being finalized at the Finance Finistry,? he said, adding that the levies included land-use fee, exploration fee, production fee and information compensation fees.

Paul said that the land-use fee during an exploration stage may, for example, be increased to US$2 a hectare from Rp 500 (US 6 cents) a hectare at present. The land use fee during an exploration stage may also be increased to $4 per hectare, he added. (*)