Lampung demand to share coal transportation fees rejected

Minister of Communications and Transportation Agung Gumelar has rejected the demand made by Lampung province to share part of revenues collected by state owned railway operator PT Kereta Api from its service to transport coal from Tanjung Enim, South Sumatera to a coal terminal in Tarahan, Bandar Lampung.

A government source said that the demand made by Lampung province to obtain Rp 3,000 from every tons of coal transported by the railway operator was unrealistic. "If all provinces passed by PT Kereta Api want to share the railway operator's revenues, the company will soon go bankrupt," he said.

According to earlier reports, the Lampung province would ask the South Sumatra-based coal producer PT Bukit Asam to pay Rp 3,000 for every ton of goods transported through the province and another Rp 10,000 for every tons of goods piled in the provincial area.

But the coal producer's president RA Sunardi rejected the demand.

A number of provincial administrations have issued controversial decisions ahead of the enforcement of the autonomy law next year. The autonomy which will give a province a wider authority to manage and operate its financial resources has encouraged the local government to impose unrealistic tax policy.

Bukit Asam, which operates a mining area in Tanjung Enim, South Sumatera and ships its coal through Tarahan coal terminal in Lampung, has to pay a numerous tax and fees to the two provincial administrations. (*)