IMA calls on govt to help ease miners' burden amid low prices

By Bambang Atmaja

Executive Director of Indonesian Mining Association (IMA) Syahrir AB called on the government to help ease burdens being faced by miners amid lower global commodity prices, otherwise many of them were going to stop operation.

The director said that the miners had exercised efficiency efforts but the production and operation costs remained high.

"Now that the industry had exercised efficiency, the government should further help easing the burdens faced by the miners," he told Petromindo.com.

For instance, the director said, miners had to pay many taxes applied by the regional governments and governmental institutions, while the revenues received by miners keep decreasing on lower prices

"There are many taxes, royalties made by not properly calculating all related aspects; the regional governments impose these, customs office also applies taxes, all without good coordination," he said.

"Now the miners remain in operation even when they are charged by 20% export tax, but should the prices keep declining, one day they can no longer operate," said Syahrir.

Editing by Adianto P. Simamora