THREE COAL COMPANIES HONOR ROYALTY PAYMENT OBLIGATIONS

Jakarta, Sept 19 (ANTARA) - Three of five coal mining companies which the government recently reprimanded for failing to pay royalties for many years were on Friday reported to have honored their obligations.
Soepomo, the finance ministry's director of multifarious state wealth, said here Friday the companies that had fulfilled their royatly paying obligations were PT Kideco Jaya Agung (Rp110 billion), PT Adaro Indonesia (Rp150 billion) and PT Berau Coal (Rp90 billion).
"Kideco and Adaro made the payment yesterday and Berau Coal this afternoon," Soepomo said.
Kideco, Adaro and Berau were among five coal companies that had previously refused to pay the royalties on the ground the government had yet to disburse tax restitutions to which they were entitled.
But the government had told the companies the royalties issue was not linked to the tax restitution problem and therefore they were expected to pay the royalties as soon as possible.
The government had also said it would try to solve both problems at the same time by asking the companies to pay a warranty of Rp600 billion and the Development Finances Comptroller(BPKP) to conduct audits on the royalties and tax restitution claims.
The two other coal companies owing royalties to the government --- PT Kaltim Prima Coal (KPC) and PT Arutmin -- had already promised to meet their obligations, Soepomo said.
KPC was expected to pay Rp150 billion and Arutmin Rp100 billion, he said.
Soepomo declined to answer when asked what the government would do if the two companies had not paid the royallties by September 19.