Samarinda appeals Supreme Court reinstate coal regulation

The Samarinda municipality administration has formally appealed the Supreme Court against Home Affairs Minister?s decision to unilaterally revoke the local administration?s regulation, the head of the municipality?s revenue office Abdur Rachim said in Samarinda on Monday.

"The appeal through the Supreme Court is our utmost effort to retain the regulation No 20, 2000," he was quoted as saying by Kaltim Post daily.

The regulation was issued in 2000 to require coal-mining companies to pay levy of Rp 1,000 per ton of coal transported through the Mahakam river. The regulation, however, received a strong protest from the local coal producers who then reported the case to Home Affairs Minister.

After hearing complaints from the local producers, Home Affairs Minister revoked the regulation early this year. The local government protested the revocation saying that the annulment of the regulation had caused major financial losses.

Rachim said the revocation had also caused a delay in the levy payment from the six companies which transported their coal through the river. The arrears of the six companies which include PT Kitadin, PT Bukit Baiduri Enterprise, PT Tanito Harum, PT Multi Harapan Utama, PT Fajar Bumi Sakti and PT Anugrah Bara Kaltim reached Rp 7 billion (US$=Rp8,900), he said. (*)