Indonesian coal miners grounded

THE Indonesian government has banned 14 executives from six domestic coal companies from leaving the country over a tax dispute.

Vivienne Ryan

Reports from the news agency Reuters said the government wanted the coal companies to settle their unpaid royalties.

The companies listed include Indonesia’s top two miners, Bumi Resources BUMI.JK and Adaro Energy.

Indonesia’s Chamber of Commerce and Industry told Reuters it was mediating between the government and the coal firms and said it was confident of a settlement being reached.

Earlier this week the Jakarta Post reported three coal producers had been found evading income tax.

Indonesian Finance Ministry directorate-general of taxation Darmin Nasution told the newspaper the companies had evaded tax payments of $US272.12 million between 2004 and 2006.