House urges coal producers to pay government’s royalties

The House of Representatives (DPR) has urged a number of coal mining companies including PT Arutmin Indonesia, PT Adaro Indonesia, PT Berau Coal, PT Kaltim Prima Coal, PT Kideco and PT BHP Kendilo Coal to immediately pay the government’s royalties, saying that a further delay would cause a serious problem to the state budget, Detik.com reported on Wednesday.

“The government’s royalties from their coal production should be paid through the state coffer in the current fiscal year although there is a controversy with their tax payment,” said a member of the House’s Commission VII on mining and energy, Djusril Djusun.

The coal mining companies have delayed the payment of the government’s royalties since the issuance of regulation PP No. 144 in 2000, which states that coal is not taxable. The unpaid royalties have since reached Rp1.75 trillion comprising of Rp592.9 billion taking place in 2001, Rp500.8 billion in 2002 and Rp646.8 billion in 2003.

The government, assisted by an independent team from the Bandung Institute of Technology (ITB), is still studying whether or not coal commodity should be considered as a taxable goods. (*)