Ministry of Internal Affairs told to revoke five local rulings on mining

The Ministry of Mineral Resources and Energy has asked the Ministry of Internal Affairs to revoke five rulings, issued by regional governments, which contradict with mining contracts issued by the central government.

Secretary general of the ministry of mineral resources and energy Djoko Darmono said on Monday that the rulings on general mining and local tax and retribution fee were moving against the ministry?s mining policy.

He pointed out as examples on ruling No. 2/2000 issued by the Kutai regency administration in East Kalimantan stipulating that mining firms must pay a 5 percent fee to the local government, and ruling No. 2/2000 issued by the North Barito government stipulating that coal mining firms must pay retribution of 250 per ton of coal output.

?It is clear that these kind of rulings are not in accordance with the policy of this ministry,? Djoko said.

The implementation of the regional autonomy policy last year has caused certain problems to mining investors operating in various provinces and regencies as local governments had been aggressive in collecting funds to support development program.(*)