Government awards 11 coal deals to local investors
Government awards 11 coal deals to local investors
JAKARTA (JP): The government awarded 11 mining contracts of
work (COWs) on Wednesday to local firms for coal exploration and
mining in several provinces.
Minister of Mines and Energy Kuntoro Mangkusubroto, who signed
the contracts on behalf of the government, expressed his
appreciation to the investors for their confidence in the mining
sector despite the uncertain economic and political situation.
"Today's signing will hopefully attract new foreign investors
to our mineral resources," Kuntoro said.
The agreements are based on the third generation of coal
contracts which require each of the investors to pay the
government a 13.5 percent royalty based on the coal free-on-board
sales.
The contracts also impose an annual rent payment, the amount
of which depends on a contractor's exploration area. Local
administrations will obtain 80 percent of the rent payment.
In addition, the contractors are subject to income and
property taxes in line with the 1994 income and property tax
laws.
Kuntoro added that the government was currently formulating a
fourth generation of COWs in anticipation of the transfer of
greater autonomy to provincial and district administrations.
"In future it will be provincial governors, not the minister
of mines and energy, who will award mining contracts."
He said mining contractors also would be obligated to give
more attention to the welfare of local people.
Utama Hadi Surya, director of PT Selo Argokencono Sakti, one
of the 11 contract holders, said he would endeavor to recruit at
least 70 percent of his workers locally.
Selo Argokencono obtained a contract to explore 32,930
hectares in South Sumatra.
The other coal mining contractors are PT Karya Bumi Baratama
with 32,170 hectares in South Sumatra, PT Teguh Reksa Daya with
44,100 hectares in West Sumatra, PT Abadi Batubara Cemerlang with
94,740 hectares in Riau, PT Sarwa Sembada Karya Bumi with 74,400
hectares in Jambi.
The other six contractors are PT Tanjung Alam Jaya with 9,721
hectares and PT Bangun Banua Persada Kalimantan with 6,960
hectares in South Kalimantan, PT Teguh Sinar Abadi with 99,690
hectares, PT Tempayang Cemerlang with 8,410 hectares, Andhika
Mutiara Etam with 71,420 hectares and PT Firman Ketaun Perkasa
with 89,290 hectares in East Kalimantan. (03)