IMK pays below target royalties

Gold miner PT Indo Moro Kencana (IMK) in North Barito district has submitted Rp 2.4 billion in royalties to the government for the 1999/2000 fiscal year - far below the target of Rp 3.6 billion for the fiscal year.

According to the head of the North Barito's revenue office, Pupu Hermansyah, all the money has been transferred directly to the central government, and the local administration only gets one percent of the total royalties value.

"I don't know what really happens why it is below the target as the money goes directly to the central government, and we get only one percent," Pupu said.

Nevertheless, Pupu acknowledged that the local administration also get a larger amount of funds from PT IMK especially from land and building taxes.

According to the prevailing rules, 80 percent of the royalties fund is returned to the provincial administration to manage. Of the 80 percent fund, 16 percent is for the provincial administration and the remaining 64 percent is distributed to regencies.

IMK, a former Indonesia-Australia joint venture, has mined for gold in North Barito since March 1994. Its production level increased from time to time, from 4.8 tons of gold ore in 1995, to 5 tons of gold ore and 92 tons of silver ore in 1996, 5 tons of gold ore and 130 tons of silver ore in 1997 and 5 tons of gold ore and 132 tons of silver ore in 1998. (*)