Five out of six Indonesian coal companies, whose top executives were banned from overseas traveling because of unpaid royalty, agreed to pay 600 billion rupiah (some 65.51 million U.S. dollars) as a guarantee to address dispute with the government, according to local newspaper Tuesday.
Indonesia, the world's largest coal exporter, has prohibited 14 executives of the firms from exiting the country due to tax disagreement.
The five companies are Adaro Indonesia inc., Arutmin Indonesia, inc., Berau Coal, inc., Kaltim Prime Coal inc., and Kideco Jaya Agung inc., according to Sindo daily.
"They (coal contractors) are ready to pay 600 billion rupiah as guarantee to settle the dispute," chairman of the Financial and Development Supervisory Board Didi Widayadi told a press conference on Monday.
The chairman said that so far only five out of six companies had agreed to settle the dispute. All the companies withheld seven trillion rupiah (some 764 million U.S. dollars) royalty payment connected with the sales in the period of 2001 to 2007, according to the government data.
Widayadi said that officials would audit whether the amount of the royalty was correct.
It is not certain whether the travel ban will be lifted once the funds is paid.
The coal producers had refused that under their coal contracts they are not subject to new tax policies issued after the documents were signed, including value added tax.
Many foreign investors complain about uncertainty of legal mining law and contract in Indonesia.
Source:Xinhua
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