HSU regency demands greater coal royalty

The Hulu Sungai Utara (HSU) regency in South Kalimantan demanded a greater share of coal royalty, saying that the current coal royalty formula was unfair, the local Banjarmasin Post reported.

The paper quoted HSU Regent Suhailin Muchtar as saying that as one of the largest coal producing area in South Kalimantan, HSU should have enjoyed a much greater amount of coal royalty.

Speaking during a hearing session with the provincial parliament, Suhailin said that under the current formula as stipulated in the government regulation No. 104/2000, the regency only received 1.2 percent in coal royalty.

He insisted that the regulation must be revised to allow HSU to obtain a greater coal royalty.

Suhailin also criticized the slow disbursement of the coal royalty from the central government. He appealed to the provincial parliament to provide a political support to accelerate the royalty disbursement.(*)