Indigenous grouping support plans to squeeze more money from large firms

A grouping of East Kalimantan indigenous people called IPDPK expressed its strong support to plans by the local administration to impose new retribution fee on large companies extracting local natural resources.

The local Radar Kaltim daily quoted head of IPDPK Awang Syahruddin as saying that the new measure would increase the revenue of the local administration to finance development in the province.

Awang said that for many years, companies have extracted the local natural resources making them to become one of Asia?s or even the world?s largest companies. But he said that the companies had only contributed little to local economic development. He pointed out that many local people were still living in poverty.

He said that in comparison, the employees of huge companies in the mining and oil and gas sectors have been living luxuriously.

He also criticized that not many local people are involved in senior management level of the company.

Local lawmakers have intensified campaign to support plans to force companies such as mining, and oil and gas companies to contribute more to finance local development.

The implementation of new autonomy law has given local administration greater power in managing economic affairs including in imposing new form of tax or retribution to raise more revenue. But the move has created concern among investors.(*)