PTBA asks PT KAI to renegotiate railway fee hike

State coal miner PT Tambang Batubara Bukit Asam (PTBA) is seeking for another round of renegotiation with railway company PT Kereta Api Indonesia (KAI) over the latter's plan to increase railway charges for carrying the former's coal products, Bisnis Indonesia daily reported Monday.

PTBA company secretary Milawarma said that the recent decision by KAI to suspend service for transporting PTBA's coal was a one-sided policy.

?It?s a one-sided policy and it ?s also a kind of monopoly by PT KAI, which caused losses to PT BA,? Milawarma said on Sunday in Jakarta.

Milawarma hopes that PT KAI will agree to continue renegotiation with PTBA regarding the increase in the railway charges.

KAI is asking for a fee of Rp 300 per ton/km (US$1=Rp 9,300). PTBA, however, rejected the proposal, saying they could only afford to pay Rp 230 per ton/km and Rp 200 per ton/km for the Tanjung Enim-Kertapati segment and the Tanjung Enim-Tarahan segment, respectively.

Both parties have failed to reach an agreement on the railway charge hike and the PTKAI issued a letter to PT BA on May 22 to inform the latter that it would suspend three train services for the Tanjung Enim-Kertapati segment and six train services for the Tanjung Enim-Tarahan segment.

Though the coal supply has been affected, Milawarma said the coal stock for domestic consumption is guaranteed. (*)