IMA demands govt to drop new mining royalty

The government must annul the new mining royalty because it is not suitable amid the current unfavorable condition in the mining sector, according to chairman of the Indonesian Mining Association (IMA) Benny Wahju.

Benny said that the domestic mining industry was still facing difficult times amid social, political and economic problems.

"The royalty ruling is very tough not only for mining companies which have been in the operation stage but also to those in the exploration stage," Benny told reporters Tuesday on the sidelines of a industry gathering.

Meanwhile, director general of mining Surnat T. Djajadiningrat acknowledged that the royalty ruling was designed when the domestic economy was booming and there was no political problems at home.

Surna said that the government and the mining industry should sit together to decide the acceptable royalty level.

He added that the state revenue from mining royalty currently reached Rp 1.3 trillion. (Godang/Epin)