President asks miners to comply with obligation on tax

By Bambang Atmaja

President Susilo Bambang Yudhoyono asked domestic and foreign mining companies operating in Indonesia to comply with obligation in paying taxes to help the government raise more revenue to plug the widening deficit of state budget following the soaring global oil prices.

?The national, multi-national companies and stated-owned enterprises (operating in mining sector) should comply with obligation in paying taxes to support the government?s efforts to increase state income from mining sector. I convey this in order to create a burden sharing,? Yudhoyono said in his speech on energy saving policy at the State Palace on Tuesday evening.

The government has widened the country?s budget deficit from 1.5 percent of the GDP to 2.23 percent of the GDP following the global oil price hike.

The government imposed a 20 percent export tax on 65 metal ores, non-metals and rocks. In addition, the miners has also obligation to pay royalty for the government.

Editing by Adianto P. Simamora