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Jakarta Post

Govt vs mining firms tax row looms as one won't comply

  • Aditya Suharmoko


JAKARTA   /   Thu, January 22 2009   /  04:35 pm

The royalty dispute between the government and mining companies is likely to crop up again as a "giant" coal company has refused to show goodwill by settling the problem, despite an approaching deadline, the tax chief says. Director General of Taxation Darmin Nasution said Wednesday the office had given the mining companies in dispute until Feb. 28 to pay previously evaded taxes. "There is one group that has not paid the royalties. The others have settled the payments," he said, refusing to name the company. "Their payment should be settled before the Sunset Policy ends (on Feb. 28)." Last year, six coal companies - PT Kideco Jaya Agung, PT Kaltim Prima Coal, PT Kendilo Coal Indonesia, PT Arutmin Indonesia, PT Berau Coal and PT Adaro Indonesia - opened up a dispute with the government by refusing to pay outstanding coal royalti...