KAI criticized for not paying coal retribution to Lampung govt

The state-owned train operator company PT Kereta Api Indonesia (KAI) should provide retribution fee to the Lampung administration for the lucrative business it obtained from the transportation of coal in the province, according to head of the local mining office, Effendi Hussen.

Effendi was quoted by the Media Indonesia daily as saying that the Lampung administration had demand such retribution fee, but so far no response yet from the train company.

KAI transports coal produced by the state-owned coal mining firm PT Tambang Batubara Bukit Asam from its Tanjung Enim mining sites to the Tarahan Port at an annual volume of 6 million tons.

Effendi said that KAI should have paid around Rp 300-400 million in retribution fee to Lampung administration. He said that Bukit Asam had contributed some Rp 3 billion.

He said that the fee was a compensation for the administration because the coal transport created pollution and traffic problem to the area.

Effendi could not tell when KAI would pay contribution because this idea was still being discussed in Jakarta if it was against the existing law.(*)