Government Prepares New Rent Rate for Extraction Sector

From: Antara News

TEMPO Interactive, Jakarta: The government has brought up plans to introduce new rate for land rate in the mining sector from a little bit above five cents to US$2, in the legislation of a new bill at the Finance Department.

Head of the State Income Sub-division from Mineral, Coal, and Geothermal of the Oil and Gas Directorate General Paul Lubis said today in a workshop at the Energy Department the annual land rate will be raised from Rp500 (about 5.5 cents dollar) per hectar to US$2 per hectare.

Paul said the government opted to use US dollar for the new rate due to its stability and to provide some benefit for government in case the dollar grew stronger against the rupiah or any other currencies, stressing that the current rate is no longer feasible in today's money value.

The raise, if approved, Paul said is to be imposed gradually but drafting is ongoing.

GUSTIDHA BUDIARTIE

ANT/Government Prepares New Rent Rate for Extraction Sector