Samarinda and Minister of Home Affairs divided over coal levy

A number of high ranking officials from the Samarinda Municipality administration are now in Jakarta to lobby for the withdrawal of Home Affairs Minister?s decision that had cancelled the municipality?s ruling to impose levy on the distribution of coal through the Mahakam river, Kaltim Post daily reported on Thursday.

The municipality strongly rejected the Home Affairs Minister?s unilateral move to cancel the levy and is committed to enforcing the ruling.

The decision on the suspension of the levy should be rejected not only because it was against the local people?s aspiration but also due to the fact that it was made without the consent of Minister of Energy and Mineral Resources, said Yayan Aliansyah, a member of the delegation, said.

Yayan, who is a member of the Samarinda legislative council, said that the Home Affairs Minister?s decision in June had totally stopped the coal levy payment to the local authority. According to him, the coal levy payment arrears have reached over Rp 7 billion (US$=Rp9,000).

The Samarinda municipality has threatened to take legal action through the state administration court if the Minister of Home Affairs continued to refuse to cancel its decision. (*)