Regent urged to suspend Antang Gunung Meratus? operation

The council of Tapin regency, South Kalimantan has urged the area?s regent to suspend the operation of coalminer PT Antang Gunung Meratus (AGM) on the grounds that the company refused to pay a local tax called ?third party contribution? at the amount set by the local administration, South Kalimantan-based newspaper Banjarmasin Post reported on Wednesday.

The local administration set the tax at Rp 1,250 per ton, but the firm was only ready to pay Rp 1,050 per ton.

Councilor Hamberani of the Golkar party said the council had officially asked regent Idris Nurdin Halidi to soon issue a decree to suspend the firm?s operation.

Hamberani said the council could not accept AGM?s stand given the fact that all other coalminers in the regency, which were smaller than AGM, had all agreed to pay the ?third party contribution? at that amount.

AGM?s manager Yoyo denied that the firm had rejected the agreement regarding the lcoal tax, but only asked the administration to give it until Oct. 27 to consider the matter.

He also said it was not fair to compare AGM with other smaller firms in the regency owned by local people as the former paid larger costs than the latter. AGM pays 13.5 percent in tax and royalty to the central government, while the other coalminers in the regency pay only 7 percent.

In August this year, the Hulu Sungai Utara regency administration in South Kalimantan issued a decree to suspend AGM?s operation in the area, citing the serious damage caused by the firm on the environment.

AGM produced around 465,000 tons of coal in 2002. (*)