Local rulings contradicting with central government regulations still not revoked

A number of local administrations still maintain their rulings that contradict with central government regulations, despite calls from the Ministry of Energy and Mineral Resources for local administrations to revoke such rules.

Indonesian Mining Association (IMA) executive director Paul L. Coutrier cited two regulations maintained by the Lampung provincial administrations, that contradicted with central government policies.

The concerned Lampung regulations were those No. 8/2000 on levies charged on the transport of minerals, especially coal, cement raw materials and potential minerals, and Regulation No. 9/2000 on levies charged on temporary storage of minerals.

Lampung Regulation No. 8/2000 requires mineral miners transporting minerals passing Lampung province to pay Rp 3,000 per ton of mineral. And Regulation No. 9/2000 requires mineral companies to pay Rp 10,000 per ton of minerals stored overnight in Lampung ports.

Such policies penalize state coal miner PT Batu Bara Bukit Asam, especially when it transports its coal from its mining sites in South Sumatra to its consumers in West Java. Because of such rulings, the company have to pay an additional Rp 104 billion per annum.

"The Ministry of Energy and Mineral Resources and the Ministry of Communications have protested the issuance of those rulings. But up until now, the rulings are still in force," Coutrier said.

He also expressed concerns over the issuance of Government Regulation No. 104/2000 on the fiscal balance between central and local administrations that could slow down the transfer of funds to local administrations. To avoid negative impacts of this regulation, IMA would help find alternative ways so that local administrations would get their rights for funds quickly. (*)