New mining bylaw in Aceh worries miners

The new coal and mineral bylaw (qanun) drafted by the Aceh provincial administration and legislative council, which seeks to obtain extra compensation funds from miners of between 3.4-6.6 percent of the price of the commodity has worried miners, Kontan daily reported on Monday.

Bob Kamandanu, Chairman of the Indonesian Miners Coal Association (or APBI), said that if approved, the new compensation fund tax would further strangle coal miners operating in the province particularly amid the lingering weak price of the commodity. He added that coal reserves in Aceh are mostly of the low rank coal category carrying low price.

He added that the qanun in Aceh, if approved, may trigger other coal producing provinces to produce similar bylaw.

The Aceh provincial administration is currently waiting for approval from the Ministry of Home Affairs.

Ekawahyu Kasih, Secretary General of the Coal and Energy Suppliers Association, hopes the central government would not approve the proposed bylaw in Aceh as it would further undermine the investment climate in the country?s coal sector. (*)