PT Bukit Asam complains over increasing local tax and fee payment

State owned coal mining company PT Tambang Batubara Bukit Asam has complained over the increase in the number of tax and fee payments the company has to pay to provincial administrations, Media Indonesia reported on Wednesday.

The coal mining company's president RA Sunardi said on Tuesday that the company, which operates a mining area in Tanjung Enim, South Sumatera but ship its coal through Tarakan coal terminal in Lampung, had to pay a numerous tax and fees to the two provincial administrations.

"Such kind of payments has seriously hurt the company's competitiveness. I afraid that the increase in the payment charged by the local governments would hamper Bukit Asam privatization program," he said, adding that if the company's operation is no longer competitive and efficient, no single investor is interested in joining the company's privatization.

Sunardi was particularly angered by a plan by the Lampung provincial administration to charge Rp 3,000 for every ton of goods transported through the province and another Rp 10,000 for every tons of goods piled in the provincial area.

"PT BA objects the plan because we have never been involved in the drafting of a regulation on the new payment," he was quoted as saying by the newspaper.

Sunardi said that in addition to a number of fees and other payment imposed by South Sumatera and Lampung provincial authorities, the coal company is also charged by state owned port operator Pelindo for the coal company's shipping activities. (*)