PT KTA Claims Rp75.14 Billion from PT CC Amid Mining Contract Dispute
Jakarta — PT Karunia Tirta Agung (PT KTA), a coal mining supporting contractor, is demanding payment of operational standby fees amounting to at least Rp7lar 75.14 billion from PT China Construction Yangtze River Indonesia (PT CC). The dispute has arisen because PT KTA claims that PT CC has failed to fulfil its payment obligations as stipulated in their mining services agreement.
PT KTA serves as a supporting contractor for PT CC in managing a coal mine concession owned by PT Dayak Membangun Pratama (PT DMP) in Gunung Mas Regency, Central Kalimantan. The concession holds a Mining Business Licence (IUP) covering an area of 4,883.17 hectares.
PT KTA Director Arie Prawiro stated that the company provides heavy equipment and manpower to support PT CC’s mining activities. This partnership is formalised under a Coal Mining Services Agreement with a contract duration of 15 years.
“PT KTA is part of PT CC’s operations to manage PT DMP’s coal mine concession. We provide support through the provision of equipment, such as heavy machinery, and manpower,” said Arie on Sunday (20/09/2026).
Arie explained that the dispute began due to operational standby conditions, which he attributed to PT CC’s failure to implement proper risk mitigation. According to the agreement, PT CC is obligated to pay standby fees to cover heavy equipment operational costs and overheads during such periods.
“It is these standby fees that we have invoiced to PT CC in April 2026. Our calculations from June 2025 to April 2026 total at least Rp75.14 billion. However, as of late July 2026, PT CC has not fulfilled its obligation to pay these standby rates,” Arie said.
Arie added that this payment delay has also impacted PT KTA’s ability to meet its obligations to 14 of its business partners, including providers of heavy equipment, spare parts, diesel fuel, and worker catering.
PT KTA maintains its debt collection process against PT CC. This effort has been pursued through formal warning letters, or summons (somasi), regarding the unpaid obligations.
Through the legal counsel Rahadian Mumtaz & Partner, PT KTA issued its first summons on 18 June 2026. Following a lack of response, a second summons was sent on 26 June 2026.
PT KTA subsequently delivered a Final Summons to PT CC on 11 September 2026. The letter was also copied to the Embassy of the People’s Republic of China (PRC) and the Chairman of China Construction Group (China State Construction Engineering Corporation), the parent company of PT CC.
Arie noted that the letter was subsequently delivered to the Chinese Embassy on 24 September 2026 and received by embassy security. (Note: This date requires clarification as it falls after the reporting date of 20 September 2026).
Arie stated that this issue serves as an evaluation for PT KTA regarding future collaborations with foreign-owned enterprises (PMA).
“Initially, our perception of PT CC was positive. However, our cooperation with PT CC—a Chinese State-Owned Enterprise which we believed had good credibility—has failed to respect the rules of cooperation in Indonesia,” he asserted.
He also expressed hope that the matter would draw the attention of the Ministry of Energy and Mineral Resources (ESDM), the Directorate General of Legal Administrative Affairs (AHU), and the Chinese Embassy, particularly in the context of foreign investment and operations in Indonesia.
Arie mentioned that PT KTA is open to the possibility of mediation through the Chinese Embassy to resolve the dispute.
“All business partners should know that this legal summons is not the final step in our collection efforts against PT CC. If PT CC continues to default on its obligation to realise the payment of the Rp75.14 billion standby fees, we will pursue further legal action,” he said.
“We hope this issue can be resolved as soon as possible, without dragging on, so that everyone can move forward happily,” Arie concluded.